XRP, the digital asset linked to the Ripple network, has been a subject of much debate among cryptocurrency traders and analysts. A recent chart analysis by crypto analyst Egrag has drawn attention to an interesting feature in XRP’s price history: a seven-year unbroken support level.
In his analysis, Egrag presents a monthly price chart that spans almost a decade, covering XRP’s journey from 2014 to the present. The analyst urges the community to examine this chart and consider whether it signals a bullish breakout for the asset or whether XRP is still trapped in a bearish market cycle.
The chart highlights two key levels: $0.41 as a lower boundary (identified as a support floor) and $0.75 as an upper target or potential resistance. These levels are crucial for understanding the market dynamics surrounding XRP. Egrag suggests that $0.41 has held firm as a support level throughout the years, acting as a floor that prevents the asset from falling into deeper declines. On the other hand, $0.75 marks a key resistance point, where XRP has struggled to break through and achieve sustained bullish momentum.
But what stands out the most in Egrag’s analysis is the formation of the so-called “Bifrost Bridge”. This blue channel, identified by Egrag, represents a major support area that XRP has stayed above since early 2017. According to the chart, XRP has largely traded within this channel, with the price staying above the Bifrost Bridge for nearly seven years.
Despite the overall downtrend that XRP has experienced over the past several years, its price action on the monthly time frame suggests that the cryptocurrency has not broken through this critical support trendline. Egrag highlights that since early 2021, XRP has shown signs of gradual bullish momentum, with its price trending upward within the Bifrost Bridge channel.
This consistent support level raises the question: can XRP break free from its long-term downtrend? The analyst’s position is that the asset’s consistent ability to stay above this support line is a bullish sign for the future. He believes that if this trend continues, XRP may be poised for a price rally, potentially breaking above the $0.75 resistance level and beyond.
Egrag first mentioned the Bifrost Bridge in October 2024, labeling it as a highly bullish trendline. He emphasized that the Bifrost Bridge has offered consistent support for XRP over the years, which has kept the price from plunging below key levels. According to Egrag, this consistent support could serve as the foundation for a potential bullish trend.
While some may view the past performance of XRP with skepticism, given its previous failure to ride the waves of the broader market bull cycles, Egrag is optimistic. He points to increased liquidity in the market and the momentum building in Bitcoin’s price as key factors that could support a shift toward altcoins like XRP.
In his latest analysis, Egrag encourages the community to view any dips in XRP’s price as an opportunity to accumulate. He is confident that a bullish trend is on the horizon, with XRP potentially set to experience a 10x to 20x gain in the current cycle.
As with any cryptocurrency analysis, Egrag’s chart has garnered mixed reactions from the XRP community. Some traders agree that the chart looks bullish, citing the strong support at $0.41 as a reason to remain optimistic. Others, however, expressed skepticism, referencing XRP’s historical inability to fully participate in previous bull markets. One commenter sarcastically pointed out that while the technical indicators seem promising, the real question is whether XRP will miss out on this cycle as it has in the past.
However, Egrag responded positively to these concerns. He acknowledged that while XRP has underperformed during previous bull markets, liquidity is now increasing, and Bitcoin’s rising momentum could bring renewed focus to altcoins. Egrag’s thesis is that if Bitcoin sees a significant upward move, it could trigger a decrease in Bitcoin dominance, leading to a shift in liquidity toward altcoins like XRP. If that happens, XRP could see major gains, potentially as high as 10x or 20x in the next market cycle.
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
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