The XRP price action is making headlines again as a rare technical pattern known as the Guardian Arch formation points to a potential 1,000% surge. If this prediction plays out, XRP, which is currently sitting at $2.28, could soar to $27, marking one of the most explosive bull runs in crypto history.
Guardian Arch Fuel $27 XRP Price Explosion
On June 6, prominent crypto analyst Egrag Crypto captured the attention of the broader crypto community by identifying a distinct pattern, the Guardian Arch, on the XRP price chart. With the emergence of this key chart formation, the analyst forecasts a parabolic move that could see XRP potentially reaching between $20 and $27 this cycle.
According to Egrag Crypto’s analysis, XRP appears to be following a measured move trajectory that historically results in a significant upward price surge. The Guardian Arch formation, highlighted by the yellow line on the XRP chart, is seen as a critical threshold that, once breached, could mark the altcoin’s entry into a sustained double-digit territory.
Notably, Egrag Crypto forecasts that the measured move points to an initial conservative target of $20 for XRP. However, with the bullish momentum from the Guardian Arch formation, the analyst believes that the XRP price could skyrocket even higher, potentially surging by 1,000% to reach historical all-time highs of $27.
In response to Egrag Crypto’s $27 price forecast for XRP, a community member questioned what level of market dominance would support this bullish thesis. The analyst replied that XRP’s dominance will need to climb to around 15%, indicating that it must capture a significantly larger portion of the total cryptocurrency market cap.
This is a rather ambitious scenario, considering XRP’s current dominance typically hovers between 2% and 4%. Moreover, achieving a 15% market dominance would require a substantial inflow of capital into the cryptocurrency and a major shift in market dynamics favoring the asset.
Post-Peak Caution And Bear Market Forecast
While the XRP price outlook, based on Egrag Crypto’s analysis, looks extremely bullish in the short to mid-term, the analyst also issues a sobering warning about the possibility of a harsh reversal. Drawing parallels with the 2021 market cycle, where XRP experienced a steep decline following its peak, the analysis outlines a potential 86% drop that could follow the projected market top of around $27.
In this bearish scenario, Egrag Crypto predicts that XRP could fall back to a price level near $3, which he considers a possible bear market bottom. The analyst has also indicated that the Guardian Arch formation on the XRP price chart may have a dual-purpose framework. This chart pattern encapsulates the potential for a massive upward move while simultaneously functioning as a gateway into a post-peak downtrend.
Notably, Egrag Crypto has emphasized the importance of strategic planning in trading, advising traders to avoid depending on a single exit point for profit taking. Instead, he recommends setting rational, tiered profit targets as the market unfolds while planning and following a clear and flexible exit strategy.
Featured image from iStock, chart from Tradingview.com
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