Market analyst EGRAG reintroduces his XRP megaphone pattern, expecting the structure to push prices to two-digit figures above $27.

The reintroduction comes on the back of the ongoing market uncertainty. Notably, despite this uncertainty, XRP has demonstrated resilience over the past few weeks. Just last weekend, the crypto asset rallied nearly 10% on Saturday before facing a mild pullback.

Amid a red Monday within the broader market yesterday, the pullback deepened, with XRP collapsing by over 6.6% to a low of $2.33 within eight hours. Interestingly, as the market recovered from this flush out, XRP is leading the pack, up 5.17% in the past week.

XRP’s Megaphone Pattern

EGRAG’s latest analysis comes amid this recovery effort. As XRP rebounds above the $2.5 level, the market analyst leveraged a 1-month chart to highlight the formation of what he calls the “megaphone pattern.” For context, this structure refers to a large broadening pattern.

The analyst first highlighted the XRP megaphone pattern on the 25-day chart in March 2023. At the time, XRP changed hands at $0.3895. According to EGRAG, this pattern is quite efficient, boasting a 70% win ratio, but is more effective on longer timeframes.

In the latest disclosure, EGRAG emphasized that the megaphone pattern features higher highs and higher lows, suggesting that the bulls are generally in control amid an increase in volatility. 

Typically, this structure boasts three major bottoming phases and three major price upswings. Data from the chart indicates that XRP formed the first bottom at a floor price of $0.00058 in September 2014. Notably, the altcoin recovered from this low with the first upswing, hitting a peak of $0.0306 in December 2014.

After this top, a correction ensued, pushing prices to the second bottom of $0.003 in January 2017. Again, XRP recovered from this bottom, soaring to a new peak of $3.5 in January 2018, representing its all-time high. This marked the second upswing.

XRP Now Navigating the Third Upswing

He emphasized that during this third upswing, XRP price is expected to breach the previous top of $3.5 and not slump below this level again regardless of the pullback that ensues. 

Interestingly, the analyst leverages Fibonacci retracements to set three targets for XRP as it navigates this third upswing. 

The first price target lies on the Fib. 1.272 mark, representing a price of $8.15. A push above here would allow XRP aim for the second target at $13.3 (Fib. 1.414). Meanwhile, EGRAG sees a third target of $27.05, aligning with Fibonacci 1.618. 

Currently, XRP trades for $2.54 and would need a 964% increase to claim the $27.05 target. Notably, in the previous analysis, EGRAG set a more ambitious target of five digits. However, he chose not to mention his ultimate target this time, stressing that he does not wish to “mislead newbies.”

Meanwhile, EGRAG emphasized that to confirm the megaphone pattern, traders should monitor volume indicators for an increase. In addition, a confirmation would also come up with XRP persistently trading above the breakout point.

DisClamier: This content is informational and should not be considered financial advice.

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