XRP has continued to hold above the $3 mark, moving in line with broader crypto market momentum. According to a recent technical analysis by popular chartist Egrag Crypto, XRP is entering a critical phase that could push its price into double digits. His study focuses on the asset’s monthly Relative Strength Index, RSI, which is currently playing out what he terms the “Cycle of Three”.
Cycle of Three Explained
Egrag’s framework identifies a repeating pattern on XRP’s monthly RSI indicator. Historically, this sequence plays out in three distinct stages.
- A major RSI pump,
- A correction phase,
- A blow off top, which has marked cycle peaks.
Both Cycle 1 in 2017 and Cycle 2 in 2021 followed this trajectory, although with differing intensity. The 2017 rally was much stronger, with XRP soaring from under $0.1 to an all time high of $3.40. In contrast, the 2021 cycle was dampened by the ongoing Ripple lawsuit, which reduced the rally’s strength, but the same RSI sequence still appeared.
Now, Cycle 3 has already completed the pump and correction stages, leaving only the blow off top to unfold. According to Egrag, this final stage could be explosive.
RSI Targets and Price Implications
Egrag Crypto projects three potential targets for XRP’s monthly RSI peak, 80, 87, and 97. These projections are based on RSI trajectories from the past two cycles and adapted to today’s market setup.
If XRP’s RSI reaches these elevated levels, it would signal one of the strongest overbought phases in its history. The last time XRP’s monthly RSI climbed above 90 was during the 2017 bull run, which coincided with its explosive move to $3.40.
In technical analysis, an RSI reading above 70 signals overbought conditions. However, in strong bull markets, such levels can persist while prices continue to climb. For XRP, achieving an RSI peak above 80 could align with new all time highs, surpassing its recently established high of $3.65. Realistically, this may open the door for price targets at $4, $5, and potentially double digits.
At the time of writing, XRP was trading at $3.12 with a monthly RSI reading of 73, showing it is already approaching overbought levels.
Potential Risks
While a blow off top may suggest significant gains, it also signals a possible multi year top. An RSI reading close to 97 would not only suggest extreme market strength, it would also hint that XRP could be nearing the end of its bullish cycle before a larger correction.
Conclusion
Egrag Crypto’s analysis highlights the importance of XRP’s RSI trajectory in anticipating market moves. With the Cycle of Three nearing its final stage, traders and investors are watching closely to see if XRP can deliver another historic rally.
