A crypto analyst recently expressed frustration after an earlier technical forecast for Ripple’s XRP token largely played out to painful accuracy. However, he maintains hope of an eventual euphoric rally ahead.
In a tweet, EGRAG Crypto highlighted forming what he termed a “Helheim Gateway” pattern on the XRP/Bitcoin chart earlier. This formation typically leads to sharp breakdowns and severe medium-term losses, according to classical charting theory.
While EGRAG noted a speculative bullish target, with a white circle, he cautioned about the growing risks of the feared bearish structure dominating instead. Since then, XRP has staged a short-term pump and breakout but reversed swiftly in what now appears to be a bull trap fakeout.
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“Back then, I drew the White Circle with ‘?’ as a reference to a possible target…Since then, we experienced a pump and multiple closes above the falling wedge, only to find out it was just a fakeout pump,” the analyst tweeted.
With the coin since decisively losing its tentative uptrend and plunging through multiple layers of support, prices now trade firmly below EGRAG’s warned Helheim Gateway zone. This failure to hold increases the risk of continued harsh selling pressure.
XRP could surge to $7
Yet despite his accurate prediction seemingly playing out, EGRAG maintains longer-term optimism in XRP, extending its strong early 2023 gains. He theorizes that brief stabilization could materialize temporarily, akin to upside projections on the USD chart.
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EGRAG mentioned that if XRP imitates 2017, another plunge likely precedes the beginning of XRP’s road to “Valhalla,” a euphoric parabolic advance EGRAG believes leads to XRP hitting $7 despite the recent carnage.
According to CoinGecko data, Ripple XRP is trading at $0.5414, with a 2.2% drop in value over the last 24 hours.