Cryptocurrency analyst EGRAG CRYPTO has proposed that a deeper correction in XRP’s value could pave the way for a stronger long-term rally. According to the analyst’s recent evaluations, XRP is currently trading in a critical range known as the “fair value gap” (FVG). This technical concept suggests that prices tend to revert to their fair value over time. For XRP, this region is identified to be between $2.35 and $2.40, and it is suggested that the price is likely to test these points before any new upward movement.
Technical Outlook and Possible Scenarios
EGRAG emphasizes that the healthiest scenario for XRP might not be an immediate rise but rather a final pullback towards this support zone. Even if there is a sharp increase, it may lead to an equally severe correction. Consequently, filling this gap could provide a more stable foundation for a long-term bullish structure. The analyst estimates a 70% probability for a downward move first, while giving only a 30% chance for an immediate upward surge.
EGRAG also highlights the importance of the three-day chart, which offers a suitable timeframe to balance both short and long-term trends. The analyst reminds that it took several months for XRP to fill similar gaps in the past, noting that the last major gap was completed after 129 days. This implies that the current movement might extend until mid-November.
Key Levels to Watch
Among the critical levels identified by EGRAG is the $2.65 range in the short term. If this level is maintained, it may indicate stability for XRP. However, the real critical point is said to be the $2.30-$2.40 range. Testing and filling the gap in this area could represent the last dip before a strong breakout. The analyst stresses that this process requires patience from investors, indicating that building a solid foundation is more essential than rapid gains.
Meanwhile, the general market outlook also greatly concerns XRP investors. Last week’s retest of the $112,000 level by Bitcoin 
$76,429 increased optimism across the market. Experts suggest that the recovery of the leading cryptocurrency could also be a supportive factor for altcoins. This situation strengthens the probability of XRP making a stronger exit after potential retracements.
In conclusion, while short-term retracements for XRP might cause concern among investors, they could yield positive results in strengthening the long-term structure. With Bitcoin’s recovery, the altcoin market remains vibrant, offering significant earning opportunities to patient XRP investors in the coming months.
