A well-known market analyst believes XRP is still liable to record another major slump before it eventually rallies to new highs.

Notably, XRP recently managed to reclaim the $2 price level, a crucial psychological mark that dictates market sentiment. However, despite this recovery, the asset remains on uncertain footing. 

For one, ongoing macroeconomic tensions, particularly surrounding global trade issues, have weighed on investor sentiment. Although President Donald Trump’s recent move to pause tariff hikes for 90 days provided some relief, overall market uncertainty still lingers. 

XRP Fails to Close Above $2.3 to $2.5 Range

Amid this uncertainty, analyst EGRAG Crypto has confirmed that XRP is still volatile. According to his recent analysis, ‘XRP Kangaroo is Clucking.’ XRP may face another downturn before it embarks on a major bullish rally.

Taking to X, EGRAG warned that XRP must close decisively above the $2.3 to $2.5 range on the 5-day chart to confirm bullish continuation. He noted that failure to achieve this milestone could result in a pullback toward the $1.85 support level. 

For context, the last time XRP saw the $1.85 support was a week ago, right before its impressive 14.33% rebound on April 9. Since then, the asset has consistently held above $1.9 to $2, but EGRAG says it might lose this threshold. 

Specifically, EGRAG’s analysis came up on April 13, and at that time, XRP had less than 3 days left to complete the 5-day candle. Currently, this candlestick has closed with XRP trading below the $2.3 to $2.5 target range. This indicates that the analyst’s projected drop might set in. 

A Potential Drop to $1.85 and $1.40

At press time, XRP has witnessed consistent declines to trade at $2.07, now just a 10.7% drop away from reaching the $1.85 mark. Meanwhile, in his report, EGRAG further suggested that even deeper retracements below $1.85 are possible in the short term. 

He identified a worst-case scenario where XRP experiences a sharp liquidation event, briefly dipping to $1.40, a new yearly low. According to him, market makers often use sudden news or unexpected events to engineer these volatile price moves, catching retail investors off guard.

XRP Bullish Targets Remain Intact

However, EGRAG believes this potential dip is part of the broader bullish setup, not a sign of long-term weakness. Despite the short-term risk of a pullback, he remains bullish on XRP’s long-term potential. 

The analyst maintains that XRP still has its eyes set on three major price targets. The first target is $7.50, representing a 262% increase from current levels. For the second target, EGRAG sees XRP claiming $13, a level previously teased by market watcher Casi. Meanwhile, EGRAG has an ultimate XRP target of $27. 

Data from his chart shows that he expects to repeat its 2017 to 2018 price action. For context, during this period, XRP first secured a 6,896% rally from $0.0057 in February 2017 to $0.3988 in May 2017. 

After this, it pulled back and consolidated in October before engineering a second uptrend by December 2017, leading to the $3.31 peak. EGRAG thinks the current price situation aligns with XRP’s position in October 2017, and a breakout looms. 

Similarities with Past Geopolitical Tensions 

He also identified similarities with past crypto cycles, highlighting how news about China’s stance on Bitcoin mining triggered major market moves. Recall that China announced a ban on Bitcoin mining in May 2021, triggering a sharp 46% crash in BTC price from $58K to $34K.

Bitcoin eventually recovered as the crackdown on mining activities died down, reaching the $69K ATH in November 2021. Interestingly, EGRAG likens this situation to today’s geopolitical issues, where President Trump’s imposition and removal of tariffs can drive sharp swings in asset prices.

Interestingly, despite his conviction in XRP’s trajectory, EGRAG is not trading the asset. He reveals that he is neither going long nor short on the asset. Instead, he focuses on accumulating XRP at specific levels. For now, his strategy is to hold his positions while gradually increasing them during dips.