- A popular technical analyst says the price of XRP has the potential to rise between 10 and 100 times once the altseason kicks off.
- However, he clarified that the market is not yet in the altcoin season.
XRP price has been on an uptrend after breaking out from around a month of consolidation. The third-largest cryptocurrency by market cap recently touched the $3.14 mark, a value it has lost since mid-August.
With that, analysts are bracing for XRP’s possible rally to a new all-time high, beyond the prevailing $3.84 to over $4. However, one popular technical analyst believes the target is far from the token’s expected peak this cycle.
Potential 10x-100x Rally for XRP Price
According to the pseudonymous Egrag Crypto, a technical chart reader, the current price of XRP reflects “some big boy investors” securing their positions for the next big wave in the market. He reminded that there’s more in store for altcoins, especially XRP, in the upcoming altseason.
For the benefit of the uninitiated, “altseason” or “altcoin season” is a phase in the crypto market where altcoins, crypto other than Bitcoin (BTC), experience a considerable growth in value and market interest. In this case, altcoins take a significant chunk in market share of the crypto market at the expense of Bitcoin’s declining dominance.
To date, CoinMarketCap’s Altcoin Season Index Chart, a measure of the probability of an altcoin season, the scale is currently gearing toward the high likelihood of the event kicking off this month at 71 out of 100. This comes amid Bitcoin’s gradual decline in dominance from around 65% in mid-July to the present 56%.
The analyst stated that the next altseason has the potential to bring altcoins to a “whole new level.” From there, he explained, we could see them pumping between 10 and 100 times. He emphasized, “It is going to be bigger than anything we’ve seen before! Get ready!”
The Caveat
Despite his positive outlook for XRP in the coming altseason, Egrag warns that the road there will be shaky. His latest analysis confirmed that the token is breaking out as anticipated from a three-day descending triangle pattern.
The descending triangle pattern is a bearish trend indicating stable lows and descending highs in the price movements of an asset. The pattern’s exhaustion near the tip of the narrowing trend determines its next trajectory.
The technical analyst said XRP has a 50-50 chance at this point to either push its price further up or down. However, a solid bullish candle, a candlestick pattern in the chart showing a big move upward in the asset’s closing price compared to the opening price, and the candle touching $3.07 are the key to sustaining its momentum for a bull run in the short term.
Final Thoughts
Egrag’s recent take on XRP offers a captivating narrative, but that does not mean investors should jump the gun solely based on the limited scope of his analysis. Crypto and the broader financial markets are unpredictable and influenced by many factors, so a little dose of caution and supplemental research must always accompany one’s investment decisions.
Furthermore, past performance is not an indicator of future results. Hence, people should always tailor their investment decisions according to their risk tolerance, and if possible, with the aid of a professional advisor.
All information presented here is only for informative purposes. They do not constitute financial advice or product recommendations from the author or the Blockzeit team.
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