Chart Analyst Identifies Major XRP Pattern, Targets $27
A prominent chart analyst, known as ChartNerd, has identified an 8.5-year cup-and-handle pattern on XRP, suggesting the cryptocurrency is approaching a key Fibonacci retracement level that could pave the way for significant long-term price appreciation. The analyst posits that XRP could eventually reach targets of $8, $13, and $27.
This bullish outlook comes as XRP currently trades near $1.06, having experienced a substantial correction that has erased most of its gains from the past year.
In a post on X on August 4, ChartNerd described XRP’s cup-and-handle formation as “one of the largest macro setups” in the market. The analyst highlighted the token’s proximity to the 0.618 Fibonacci retracement level, which he believes could serve as a foundation for a move towards the aforementioned Fibonacci extension targets.
ChartNerd expressed strong conviction in these targets, stating they are a matter of “when, not if.” However, he also cautioned that short-term price action remains unpredictable. The analyst attributed XRP’s recent weakness not to inherent issues with the asset itself, but rather to a broader market correction affecting the cryptocurrency space.
Alternative Scenarios and Divergent Views
Despite the long-term bullish thesis, ChartNerd presented an alternative scenario where XRP might consolidate around the $1 mark for the remainder of the year. He drew a parallel to the asset’s bottoming process in June 2022, where a Gaussian channel indicator gradually caught up to the price rather than experiencing a sharp decline.
This consolidation scenario, ChartNerd clarified, is an alternative to an earlier projected target range of $0.90 to $0.70 and does not negate the long-term outlook. He noted that the initial roadmap toward the $1 area was developed when XRP was trading significantly higher, between $1.80 and $2.
However, not all market participants share ChartNerd’s optimistic projections. Trader CryptoBull, in a recent post, dismissed the lower short-term targets, expressing confidence that XRP would bypass levels like $0.87 and $0.73 entirely. “Those waiting for $0.87 or $0.73, I will see you at $23,” CryptoBull stated.
Other Analysts Weigh In on XRP’s Technicals
Other analysts have also focused on XRP’s current technical standing. EGRAG CRYPTO pointed out that the Ripple token has fallen below its 50-day moving average and is approaching the 100-day exponential moving average, a level he described as historically crucial for long-term support.
According to EGRAG CRYPTO, a move towards the $1 to $0.95 range could represent a normal retest if XRP manages to hold this area. He outlined a potential downside target near $0.80 if the token breaks towards the lower boundary of its long-term channel, while maintaining his own long-term targets of $15, $27, and above $50.
Analyst Ali Martinez also identified $1.06 as a pivotal level for XRP’s next directional move. In a report dated August 4, Martinez suggested that holding this price could open the door to $1.35 and $1.64, whereas a failure to do so could lead to a decline towards $0.62.
At the time of reporting, XRP was trading around $1.06. Data from CoinGecko indicated a decline of approximately 2% over the past seven days and more than 6% over the last 30 days. Year-to-date, XRP has fallen by about 65%, placing it nearly 71% below its all-time high of $3.65.
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