In the wake of Bitcoin”s (BTC) all-time high of $126,000 in early October, followed by substantial liquidations within the cryptocurrency market, many analysts have suggested that the market may have reached its peak and is now entering a bear cycle. However, recent trends in the price of XRP indicate an alternative perspective.
According to the well-known technical analyst Egrag Crypto, XRP is not yet in a bear trend and may be on the brink of a significant upward movement. He challenges the bearish sentiment surrounding the impending crossing of the 50-day exponential moving average (EMA) with the 200-day EMA, a pattern often referred to as the “death cross,” which typically signals a downturn.
Egrag clarified that a true bearish cross is only relevant when the price is below both EMAs and momentum is considerably decreasing. Currently, XRP is trading above the 200 EMA, which is trending upward, suggesting that bearish predictions may not hold.
Drawing parallels to the 2018 bear market following XRP”s peak at $3.84, Egrag pointed out that the death cross manifested only after significant corrections had already occurred. Thus, this pattern confirmed the bear market rather than initiating it.
In contrast, Egrag sees a closer resemblance between XRP”s current price action and the patterns observed during the 2017 and early 2021 bull cycles, which were pivotal for the token”s significant gains. He believes the current price movement indicates a late-cycle consolidation phase, setting the stage for one last rally in this market cycle. “The chart leans toward one last push, not a completed top,” Egrag stated.
The ongoing optimism surrounding XRP aligns with the views of other notable figures in the cryptocurrency realm. Hunter Horsley, CEO of Bitwise, asserts that Bitcoin still has substantial potential for further rallies due to increasing adoption and regulatory advancements. Additionally, Tom Lee, co-founder of Fundstrat and chairman of Bitmine, has made a bold prediction of Bitcoin reaching between $150,000 and $200,000 by the end of 2025.
With XRP maintaining a high correlation with Bitcoin at 0.84 over the past three months, any positive momentum in Bitcoin could significantly impact XRP”s performance, potentially reinforcing its trajectory for this cycle.
