In a recent technical update, EGRAG Crypto presented a compelling case for the XRP price with historical comparisons that suggest a significant upward trend. The focus of his analysis is the Average Sentiment Oscillator (ASO). ASO is an indicator that provides insight into market sentiment by displaying the ratio of bullish and bearish views as blue and red lines, respectively.
XRP price on course reaches $27
Updated ASO charts shared by EGRAG Crypto highlights the bullish crossover that occurred on October 3, 2023. This event is very important because it signals a change in market sentiment favoring a bullish outlook.
The analysis is similar to the formation observed in 2017, marked by point A on the chart, which saw the price of XRP rise by 55,000% over the next 275 days. This historical event is used as a benchmark to compare current market behavior.
The analysis further notes that a similar bullish crossover occurred between late 2020 and 2021, resulting in a 1,500% increase in asset value over 273 days, reinforcing the importance of this crossover as a harbinger of significant price movements.
The current chart shows what EGRAG describes as the “largest jaw,” citing a significant gap between ASO’s bullish and bearish sentiment lines. Egrag sees these differences as indicators of a potentially stronger bullish trend than previously observed.
EGRAG’s analysis suggests that XRP will be on a similar trajectory through July of this year, with a 9-bar, or 274-day, pattern since the last bullish crossover that reflects the timing of the last surge.
In particular, the ASO trend line is currently trending downward again. However, according to cryptocurrency analysts, this is no cause for concern. XRP is still going strong. “We can confidently say that the current curve is very similar to the shape it had in 2017. For a visual representation, check out the chart below marked “Check here,” says Egrag.
ASO’s central line of 50% marks the balance between bullish and bearish sentiment, while the current bullish sentiment line is well above this threshold, reinforcing expectations of continued price gains.
Using XRP price movements from previous ASO bullish crossovers, Egrag estimates that the XRP price could reach $27 by July 2024. So Egrag’s advice to the XRP army is very simple: The key to winning this game is to #BUY, #HODL, and take a seat. Simply put, as Raoul Pal said, ‘Don’t do a damn thing.’”
At press time, XRP was trading at $0.57051.
Featured image from Shutterstock, chart from TradingView.com
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