In a recent technical update, EGRAG Crypto presented a compelling analysis of the XRP price, shedding light on a potential upward trend that could benefit investors. The focal point of this analysis is the Average Sentiment Oscillator (ASO), a reliable indicator that provides insights into market sentiment by depicting the proportion of bullish and bearish perspectives through a blue and a red line, respectively.
The updated ASO chart shared by EGRAG Crypto highlights a bullish cross that occurred on October 3rd, 2023. This event is critical as it suggests a shift in market sentiment in favor of a bullish outlook for XRP. The analysis draws a parallel to a similar formation observed in 2017, labeled as point A on the chart, which was followed by an astonishing 55,000% increase in the price of XRP over a span of 275 days. This historical event serves as a benchmark to compare the current market behavior.
The analysis further references a bullish cross that took place between late 2020 and 2021, which resulted in a remarkable 1,500% increase in the value of XRP over 273 days. This serves as additional evidence to reinforce the significance of such crossovers as precursors to substantial price movements.
The Largest Jaw and its Implications
Presently, the ASO chart illustrates what EGRAG describes as “the largest jaw,” referring to the significant gap between the bullish and bearish sentiment lines. EGRAG views this divergence as an indicator of a potentially stronger bullish trend than previously observed. With the current pattern mirroring the timing of past surges, consisting of 9 bars or 274 days since the last bullish cross, EGRAG’s analysis suggests that XRP could follow a similar trajectory by July of this year.
Although the ASO trendline is currently trending downwards, EGRAG assures investors that there is no cause for concern. XRP remains on its bullish path, and EGRAG firmly states, “Confidently, I can affirm that the current curve closely resembles the formation seen in 2017.” The chart provided by EGRAG offers a visual representation of this resemblance.
A Positive Future Projection
While the ASO’s centerline at 50% traditionally marks a balance point between bullish and bearish sentiments, the current bullish sentiment line is well above this threshold. This reinforces the expectation of a continued rise in the price of XRP. EGRAG extrapolates the XRP price movement from previous instances of ASO bullish crosses and suggests that it could reach $27 by July 2024.
Given the promising outlook for XRP, EGRAG’s advice to investors is quite simple: “STAY STEADY!” EGRAG emphasizes the importance of buying, holding, and remaining patient. This strategy aligns with the advice of prominent investor Raoul Pal, who famously stated, “Do not [mess] it up.”
At the time of writing, XRP is trading at $0.57051, and it is important to note that investing carries risks. The information provided in this analysis is for educational purposes only and should not be taken as financial advice. Investors are encouraged to conduct their own research and make informed decisions before engaging in any investment activities.
