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- Egrag sees a 70% chance of a pullback to $2.35–$2.40 before XRP rallies.
- Past price gaps suggest a potential move by mid-November.
- Long-term bullish outlook remains intact despite near-term risks.
XRP has been hovering near key resistance levels, but one of its most vocal supporters believes the token may need a short-term setback before it can truly break higher. Market analyst Egrag, often described as a permabull on XRP, shared a cautious outlook with followers, stressing that the path to higher prices matters just as much as the destination.
A Case for a Market Reset
According to Egrag, there is a 70% chance that XRP will undergo a “flush-out” — a sharp pullback that shakes out weaker hands — before beginning a meaningful rally. He argues that such a correction would be healthier for the market than an unsustainable spike upward, which could invite a deeper reversal later.
His analysis points to the Fair Value Gap (FVG) between $2.35 and $2.40, an area left behind after XRP’s run toward $3.66. Filling this gap, he suggests, could build a firmer foundation for the next leg higher. At current levels around $2.85, that implies a potential 17.5% decline.
Timing and Price Levels to Watch
While Egrag avoids firm predictions, he notes that past gap fills on XRP’s three-day chart have taken roughly 129 days to play out. This places mid-November as a possible timeline for the move, though he emphasizes structure over exact timing. For now, he sees $2.65 as a key preliminary support before a deeper pullback into the FVG zone.
Investor Sentiment Splits
Egrag’s outlook contrasts with growing excitement about an October rally, fueled by anticipation of new crypto ETFs. However, some traders warn of a “sell-the-news” scenario, where prices stall despite positive headlines. Meanwhile, reports suggest that several big-money traders have opened significant short positions against XRP, betting on a downside move in the near term.
Also Read: XRP ETF Approval Almost Certain: Could Ripple Hit $33 Soon?
Long-Term Bullish Outlook
Despite his caution, Egrag remains firm in his long-term bullish stance. He believes that a controlled correction would set XRP up for a sustainable breakout, potentially supporting a climb beyond previous highs once the market stabilizes.
For XRP investors, the message is clear: short-term volatility could be necessary pain on the road to long-term gains. Whether XRP dips toward the $2.35–$2.40 zone or defies expectations with an early rally, the coming weeks could prove pivotal in shaping the next major move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
