XRP ‘gate will swing wide open’ to $27 after hitting this level 
Cryptocurrency Aug 29, 2024 Share
Historical price movements suggest that XRP might be on the verge of exiting its current consolidation phase and reaching new record highs in the double digits.
Cryptocurrency analyst Egrag Crypto highlighted this possibility in an X post on August 29, noting that XRP could hit $27 if it clears several key barriers.
Referencing XRP’s historical price action, particularly its explosive rally in 2017, the expert noted that even a partial repeat of that pump could propel XRP to the 0.618 Fibonacci level, a key support or resistance in asset price analysis. This level corresponds to an XRP target of $27.
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Notably, traders use Fibonacci retracement to identify potential reversal points, and the expert believes this level could be a significant barrier or target if XRP sees similar bullish momentum as in the past.
XRP price analysis chart. Source: TradingView: Egrag Crypto
Notably, if XRP reaches this milestone, its market cap could be approximately $1.57 trillion, making it the most valuable digital asset if Bitcoin (BTC) records minimal gains.
XRP’s key level to watch
However, the analyst emphasized that XRP must achieve a crucial price level before this potential rally occurs. Specifically, he pointed to the $0.75 level as a pivotal threshold.
“If XRP experiences half of its 2017 pump, it could reach the 0.618 Fibonacci level. This puts the target around $27. The gate will swing wide open once we close above 0.75c with conviction,” the expert noted.
According to his analysis, closing above this price point would be significant because it would break the current resistance level that has capped XRP’s price for an extended period.
A convincing close above $0.75 could signal increased buying pressure and renewed bullish sentiment, potentially paving the way for a more sustained upward movement toward higher Fibonacci levels.
Although the analyst is projecting a bullish breakout for XRP, as reported by Finbold, trading expert Alan Santana warned that investors should anticipate a possible plunge in XRP’s price.
The expert pointed out that the token navigates a descending channel, a pattern that has consistently driven the price lower. In this line, he anticipates XRP could plunge to $0.30.
XRP price chart analysis
XRP is trading at $0.574, just below its 50-day Simple Moving Average (SMA) of $0.571. This positioning suggests that XRP is hovering near its average price over the past 50 days, indicating a period of consolidation during which the market may be awaiting further direction.
The 200-day SMA, a key indicator of long-term trends, stands at $0.547. With XRP trading above this level, it signals that the long-term uptrend remains intact, though the proximity to this SMA suggests the token is near a crucial support level.
Additionally, the 14-day Relative Strength Index (RSI) is at 48.33, which falls close to the scale’s midpoint, reflecting a balanced market. This level indicates that the token is neither overbought nor oversold, with no significant momentum driving the price in either direction.
XRP seven-day price chart. Source: Finbold
As things stand, XRP remains in a long-standing consolidation phase below the $0.60 mark. Therefore, the token will need to clear this resistance to validate any chance of a possible bullish movement.
Implication of SEC case
It’s worth noting that XRP’s next price movement largely hinges on the ongoing legal case between Ripple and the Securities Exchange Commission (SEC). Although the initial ruling minimized the chances of XRP being declared a security, the token’s upward trajectory has stalled due to fears of a possible SEC appeal.
In a recent update, attorney Bill Morgan, in an X post, noted that the SEC is unlikely to appeal the final ruling in the Ripple lawsuit. According to Morgan, Judge Analisa Torres’ final decision could be interpreted as a win for the regulator from a legal perspective.
Morgan also pointed out that the judge in the SEC vs. Kraken case has favored the approach taken by Judge Amy Berman Jackson in the SEC vs. Binance lawsuit and Judge Torres in the SEC vs. Ripple lawsuit. The main takeaway is that these judges distinguish between primary and secondary market sales of the asset.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
