Seasoned Analyst Sees XRP Rallying to $2 With Formation of a “Steel Foundation”

Seasoned crypto analyst EGRAG recently provided an outlook into the price of XRP, suggesting that the asset is on the cusp of a rally, potentially reaching the $2 mark.

EGRAG’s outlook draws from an analysis based on a 4-month candle chart. The charts highlighted the potential for XRP to rally to an impressive $2, characterized by the formation of what he calls a “Steel Foundation.”

The chartist emphasized scrutinizing higher time frames in crypto chart analysis. This approach, he contends, provides a more dependable view of market trends, as its susceptibility to false signals is low.

The Steel Foundations

One of the central concepts EGRAG introduces is the “Steel Foundation.” His charts show that this is the bottom part of each zone, serving as the final defense line for XRP’s price. Notably, the chart presents two zones: A and B.

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Zone A ranges from $0.00485 to $0.02483. The Steel Foundation of this zone, serving as the last defense line, spanned from $0.00485 to $0.00596.

Interestingly, XRP towered above Zone A when it skyrocketed in 2017. The asset had remained within this zone since July 2013 but transcended it amid the monumental rally it embarked on in late 2017.

This rally resulted in the formation of Zone B and its Steel Foundation. Zone B sits between $0.25939 and $1.61880. However, the Steel Foundation of Zone B ranges from $0.25939 to $0.32630. XRP has been stuck within the confines of Zone B since then.

EGRAG highlighted the resilience of Zone A’s Steel Foundation, which remained unscathed, in stark contrast to Zone B’s foundation, which briefly fell during the previous bear market. 

XRP Price Actions

EGRAG’s analysis also points out significant moments in XRP’s recent history. He noted that in June 2022, September 2022, and January 2023, XRP approached the critical threshold of breaching the Steel Foundation of Zone B.

Such a breach would have brought XRP’s price to lower levels. However, the bulls stepped in valiantly in each instance, fending off potential downturns.

The analyst pinpointed a crucial battleground for XRP, ranging from $0.80 to $0.85. In this range, XRP has consistently remained red during the bear market, never experiencing a full-fledged surge indicated by a green candle closing above it.

EGRAG suggested that the next time XRP records one monthly green candle closing above $0.83, the asset could transcend Zone B, eventually creating the next Steel Foundation. As a result, EGRAG believes the days of acquiring XRP for less than $1 may be numbered.

Notably, he encouraged market participants to prepare for the $2 range. Data from the chart reveals that the analyst expects XRP to form the next Steel Foundation between $1.61880 and $2. This Steel Foundation would then serve as the defense line for the next zone. 

XRP is changing hands at $0.5005, down 0.24% in the past 24 hours. Volatility has reduced amid a decline in trade volume over the last few days. The asset must rally over 299% from its current value to hit $2.