Despite an ongoing setback in terms of price growth for the majority of assets in the cryptocurrency market, XRP included, things could soon take an ‘epic’ turn for the better for the currently third-largest crypto by market capitalization.
Specifically, XRP’s R-squared value in a linear regression channel on a logarithmic scale on its long-term monthly chart is standing at 0.84754, and its “next target should be epic,” according to the observations shared by popular crypto trading expert Egrag Crypto in an X post on August 29.
Indeed, a regression model can show the ‘average path’ of XRP’s price history, with the R-squared value of 0.84754 meaning the regression model is a very good fit. In fact, this model could explain about 85% of XRP’s historical price behavior.
As a reminder, XRP has hit the upper edge of the channel three times, which suggests the top of the channel acts as a strong ‘target zone’ during bull cycles. In 2017, it didn’t just touch the top – it overshot by 570%. During the 2021 run, however, XRP missed by 45%, stopping short of the channel ceiling.
In other words, every big cycle, XRP either hits the channel top, falls short, or overshoots massively, so the realistic targets for this cycle include $18 (if it misses again), $27 (if it hits the top), or even $200 (if history repeats itself with an overshoot) – with 85% accuracy.
‘Epic’ next target at $18?
There are three potential outcomes that Egrag Crypto has outlined, and the numbers might trend higher over time because the regression line itself is sloping upward, perhaps even towards the ‘epic’ target, which in this case, could be $18.
For the time being, however, XRP is changing hands at the price of $2.88, which indicates a decline of 3.88% in the last 24 hours, a 0.99% increase across the previous seven days, as well as an accumulated drop of 7.24% on its monthly chart.
Indeed, XRP is currently retracing toward $2.83, which professional crypto trader Ali Martinez anticipated on August 27, following its earlier failure to break past the $3.10 resistance, and this might be the cliff that Egrag Crypto mentioned before ‘Valhalla’ can happen at $23.
What do you think?
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