XRP is exhibiting a technical formation that could influence its trajectory over the coming months, according to market analyst EGRAG CRYPTO.
The 2-month bullish engulfing pattern
Crypto analyst EGRAG CRYPTO has identified a developing bullish engulfing pattern on XRP’s 2-month chart. This formation appears in a price zone that historically marked significant turning points for the digital asset.
EGRAG CRYPTO compared the current pattern to those seen in previous cycles, emphasizing that similar setups often signaled XRP was nearing the end of a pronounced downturn. The analyst suggested that XRP’s current chart structure closely resembles earlier instances where the bullish engulfing signal appeared near major cycle lows.
Crypto analyst EGRAG CRYPTO points out that historical data shows when XRP prints a bullish engulfing structure close to a major bottom, the previous cycle low often remains intact, though retests are still possible.
XRP has recently seen increased attention from traders, following a rapid price rise of over 50% within three days. The price, however, remains below key resistance areas around $2 and $2.20, even as moving averages reflect ongoing volatility.
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AAPL$0.98 as a technical anchor
The $0.98 level remains a central focus within EGRAG CRYPTO’s analysis. According to historical examples, this area has repeatedly acted as a reference point when bullish engulfing patterns developed following prolonged declines.
EGRAG CRYPTO states that forming this pattern near $0.98 often reflects a durable bottom, with the “specific extreme low often not retested.” This places added importance on the candle’s closing strength as the 2-month period progresses.
According to EGRAG CRYPTO, “This 2-month signal matters. When XRP prints a bullish engulfing structure near a major bottom, the extreme low often stays intact.”
A confirmed close above this region could reinforce the structural integrity of the bullish signal, while an incomplete candle leaves the outlook uncertain.
The role of the 7-week and 11-week moving averages
EGRAG CRYPTO also examines XRP’s 7-week and 11-week moving averages (MA), suggesting that reclaiming the 7-week MA could be a pivotal milestone for the next stage of price action. Historically, XRP has required several attempts to break and hold above this average, frequently experiencing 2 to 3 consecutive candles of consolidation or retest before advancing further.
Looking ahead, EGRAG CRYPTO identifies the October–December window as a potential period for stronger price momentum, provided technical conditions develop as projected. This phase could set the foundation for a broader market move later in the year.
Mini dictionary: Bullish engulfing pattern, a candlestick formation where a larger bullish candle completely covers the previous bearish candle, often interpreted by traders as a signal for a potential reversal out of a downtrend.
XRP is a digital asset associated with the Ripple payment network, widely used for cross-border transactions and liquidity solutions in the cryptocurrency industry.
