XRP has reached a crucial juncture in its long-term price structure as its Gaussian Channel technical indicator turned red on the two-week chart, according to analyst Egrag Crypto. The analyst, who is known for his chart-based cryptocurrency forecasts, highlighted that this rare shift could indicate a key bottoming process similar to a previous market cycle.
Red Signal Aligns With Prior Macro Bottom
Egrag Crypto, a notable figure in the cryptocurrency analysis community, drew comparisons between the current red phase in the Gaussian Channel and a similar event during an earlier XRP market cycle. At that time, the indicator’s shift to red coincided with the formation of a macro double bottom, after which XRP entered an extended uptrend.
Currently, XRP is trading in the $1.03–$1.04 range. Egrag Crypto believes this region could once again serve as a major support zone, setting up the possibility of a higher second low in the asset’s long-term structure.
Recent analysis suggests that XRP’s Gaussian Channel turning red could mirror the conditions that led to a major double bottom in the past, with the $1.03–$1.04 zone likely to play an important role in establishing another significant low.
In his technical chart, the analyst indicated that XRP’s price action is developing within a broad ascending channel, bordered by what he identifies as the Central Line and Macro Bottom Line. He emphasized that monitoring the two-week structure provides better context for these signals than viewing the indicator’s color change in isolation.
Mini dictionary: Gaussian Channel – A technical analysis tool that applies a Gaussian moving average to create dynamic support and resistance bands, helping traders identify trend shifts and potential reversal points.
Potential Major Breakout Level at $3.50
Egrag Crypto stated that the $3.50 threshold is pivotal in confirming a shift towards a bullish long-term market structure. A sustained close above this level, in his assessment, would not only signal a macro higher high but also add further confirmation for continued upward momentum in XRP.
His projections include significant price targets of $60 and $180, based on measured moves derived from the current technical setup. These levels reflect the scale of potential appreciation if the positive market structure unfolds as anticipated.
| Key Price Level | Significance in Analysis |
|---|---|
| $1.03–$1.04 | Potential support, possible macro double bottom formation |
| $3.50 | Breakout level confirming bullish shift |
| $60 | Long-term bullish target |
| $180 | Extended bullish target |
The analyst’s scenario involves XRP rebounding from support, targeting $3.50 as the next major resistance, and potentially breaking out to reach the higher targets over the long term.
XRP Outlook Remains Bullish Despite Bearish Signal
While the Gaussian Channel’s red phase often suggests caution, Egrag Crypto continues to view the current structure as a possible accumulation phase. He stated that the price setup could soon transition from corrective to strongly bullish if the foundational pattern is completed.
Egrag Crypto expressed confidence that XRP’s price could reach “much, much, much higher” levels if the anticipated structure develops as projected, underscoring the importance of both a higher low and a breakout past $3.50 in achieving this outlook.
Establishing a macro double bottom higher than the previous cycle’s low, followed by a move above $3.50, forms the basis for his optimism. Should these conditions be fulfilled, his analysis supports long-term targets of $60 and $180 for XRP.
