XRP Could Surge 550% Despite Weakness

What to Know:

• XRP is currently experiencing a pullback, causing concern among short-term traders, however one analyst suggests the long-term macro trend remains bullish.
• A multi-timeframe analysis reveals bearish signals in the short to mid-term, but the monthly chart indicates continued upward momentum.
• The analyst’s model projects a potential move to the $9-$13 range, contingent on the monthly candle holding above its support structure.

XRP has faced considerable volatility recently, leading to apprehension among investors focused on shorter time horizons. Amidst this uncertainty, market analysts are weighing in, offering perspectives on whether the current pullback is merely a temporary deviation or a sign of a more significant trend reversal. One analyst in particular, EGRAG, maintains that the overarching macro trend for XRP remains intact, potentially targeting a move into the double-digit range.

Multi-Timeframe Analysis

EGRAG’s analysis incorporates multiple timeframes, revealing a mixed picture. While shorter-term charts, such as the 4-hour, daily, and weekly, indicate bearish pressure as they trade below the 21-day Exponential Moving Average (EMA), the monthly chart presents a contrasting view. On the monthly timeframe, XRP remains above the 21-EMA, a key signal that EGRAG considers paramount. This divergence highlights the importance of considering longer-term trends when assessing potential price movements, especially in volatile assets like XRP.

The Significance of the Monthly Chart

The analyst emphasizes the significance of higher timeframes in technical analysis, stating that they often carry more weight than shorter-term signals. This perspective suggests that while short-term price fluctuations may generate fear and uncertainty, they should be viewed as “noise” within the context of the broader, more reliable monthly trend. This approach aligns with institutional strategies that prioritize long-term positions over short-term speculation, reflecting a focus on fundamental value and market cycles.

Projected Price Targets

Despite recent price underperformance, EGRAG’s long-term “Chasm” model continues to project XRP upward, targeting the $9-$13 range. This projection relies on the assumption that the monthly candle will hold above its support structure, which remains intact. The analyst assigns a 55-65% probability to XRP reaching this level within the next 3-6 months, citing the potential for higher-timeframe momentum to trigger rapid and decisive price movements. Such a move would require a substantial increase from XRP’s current levels, underscoring the potential for significant returns if the projected scenario unfolds.

Broader Market Sentiment

EGRAG’s optimistic outlook is echoed by other market analysts, such as Dr. Whale, who anticipates XRP reaching up to $4 within four months. Additionally, 24/7 Wall St analysts suggest a potential target of $4.50 by the end of 2026, citing Ripple’s plans to launch RLUSD in Japan by Q1 2026. These projections reflect a broader sentiment of optimism surrounding XRP’s long-term prospects, driven by factors such as regulatory developments, technological advancements, and strategic initiatives by Ripple. The potential introduction of spot XRP ETFs could further bolster market confidence and drive institutional inflows, mirroring the impact seen with Bitcoin ETFs.

ETF Impact and Institutional Adoption

The emergence of spot XRP ETFs has already demonstrated significant demand, with these products accumulating over $756 million in XRP within weeks of launch. This development underscores the growing institutional interest in XRP and the potential for ETFs to serve as a major catalyst for price appreciation. The mechanics of these ETFs, including the creation and redemption processes, can significantly impact liquidity and price discovery, potentially leading to increased stability and reduced volatility over time. This mirrors the maturation seen in other digital assets following the introduction of regulated investment vehicles.

The current pullback in XRP’s price has understandably stirred concerns among short-term traders. However, a broader analysis, particularly focusing on higher timeframes, suggests that the macro trend remains bullish. The projections of reaching $9-$13 within the coming months, while ambitious, highlight the potential for significant gains if the identified support structure holds. As always, investors should conduct their own due diligence and consider their risk tolerance before making investment decisions.

Related: XRP Price: $12M Max Pain for Bears

Source: Original article