A market analyst recently highlighted circumstances under which XRP could see a boost to an ambitious $13 price mark. XRP has impressed the crypto community with its recent relief rally, surging past various resistances.
Notwithstanding, while a $10 forecast might seem like a reach to the majority of the community, an analyst is already setting up conditions for a $13 price target.
XRP needs to close above $0.55 to $0.60
Pseudonymous market watcher Egrag Crypto’s “XRP Road to $13” highlights some interesting positions. According to the analysis, three conditions must be met for XRP to see a rally to $13 in the long run. These conditions are intertwined, as the satisfaction of one is a prerequisite for the other.
Egrag drew a Multi-Year Trend Line (MYTL) spanning nine years, from 2014, to contextualise the analysis. The chart indicates that XRP has traded above the trend line for the most part, with rare situations of price actions below it.
The chart shows that XRP is trading above the MYTL due to its recent meteoric rise. Egrag noted that, for the asset to see an eventual surge to $13, it has to remain above the MYTL.
Furthermore, as the second condition, Egrag mentioned that the asset needs to close above $0.55 to $0.60. At the time of the analysis, XRP was changing hands at $0.52. Nonetheless, the asset has dropped slightly, currently trading at $0.5 as of press time.
Despite a loss of momentum, XRP is still currently trading at a 4-month high
Lastly, as seen on the chart, a descending channel pattern is drawn to highlight XRP’s long downtrend. The analysis posits that the asset needs to close above the descending channel to see a rally to $13.
XRPUSD Chart by TradingView
Another analyst recently noted this downtrend which spanned 528 days since April last year. However, XRP recently broke out of the downtrend as its rally gained steam.
To close his analysis, Egrag positioned an Elliot Wave pattern with five nodes, three of which are bearish. Per the analysis, the satisfaction of these conditions should take XRP to $1.4, after which it would face a correction.
Following the correction, the asset should rally to $6.3 before seeing another rejection. A rally against this second rejection should eventually take XRP to $13.13 sometime late-2023.
XRP has captured the heart of the majority, as its recent rally puts it on the list of top-gaining assets. Despite a loss of momentum, the asset is currently trading at a 4-month high. XRP is currently changing hands at $0.5 at the time of reporting, up 31% in the past week.