XRP is showing a major technical level formation on its monthly chart that has attracted a lot of attention. Egrag Crypto, XRP’s most followed XRP analyst, has identified a major W pattern developing over the years of price history.
This is a structure that, when it plays full, it has a 25% to 35% chance of carrying the XRP price to the $22 target. The structure of the pattern has a high probability of bullish continuation, but only if the standards are important continue to hold in the short term.
Macro W Formation Shows Breakout and Retesting Continues
Egrag’s chart analysis shows a large W-shaped structure developing at all time highs on the XRP chart. The formation of W takes years of XRP price action on a monthly time frame, and the first leg is already complete. The second leg is now into a breakout followed by a pullback to the previous resistance area.
That pullback is playing out around the $1.60 region, which is shown on the chart below as a bullish hammer candle. A break above resistance has already occurred, and price action is now trying to confirm that level as support. The presence of this bullish hammer candle indicates that they are not buying they come in during the re-examination.
As long as XRP holds within the $1.60 to $1.80 range, then the bullish structure remains. Loss of this area will begin to damage the structural integrity of the pattern. Invalidation, on the contrary, will occur if the price of XRP divided by $1.40 to $1.20 or continued failure to breach more than $2.00.
XRP price chart. Source: @egragcrypto On X
The Number of Targets You Should Be Aware of
Although the analysis reveals a very high target for XRP, the current focus is on returning $2.00. Egrag points to this level as a key enabler that can move a building from simple retesting to proven progress.
A move above $2.00, followed by continued acceptance, would indicate that XRP has regained strength after pulling back. From there, the next level to watch sits around $3.30, which coincides with the upper boundary of the current range shown on the chart.
Only after full expansion at these levels the $22 target will start to appear. The proposed target of $22 is based on the movement measured from the macro W structure, combined with neck resistance, historical expansion repetition, and macro cycle behavior. However, Egrag does not treat this result as guaranteed.
Egrag was clear about the the probability of the next movement of XRP from the present value. A full extension to $22 carries a 25% to 35% probability, while a partial move in the $3 to $8 range is given a 50% to 60% probability. An outright failure and a break below $1.20 is only given a 10% to 15% chance. At the time of writing, XRP is trading at $1.40.
Featured image from Shutterstock, chart from TradingView
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