XRP continues to hold above the $3 price level, moving in sync with the overall trend of the cryptocurrency market. According to the latest technical analysis by renowned chartist Egrag Crypto, this coin is entering a critical phase that could push the price to explode into double digits. The focus of Egrag's research is the Relative Strength Index (RSI) on the monthly timeframe, which is replicating a pattern he calls 'Cycle Three.'

Explanation of 'Cycle Three'

According to Egrag's analytical framework, XRP's RSI tends to repeat a pattern through three stages:

  1. Major Pump

  2. Correction Phase

  3. Blow-off Top – a phase that marks the peaks of a cycle.

Historically, XRP has witnessed two distinct cycles:

  • Cycle 1 (2017): XRP exploded from below $0.1 to a historical peak of $3.40.

  • Cycle 2 (2021): The growth phase was hampered by the lawsuit with the SEC, weakening the momentum, but the RSI pattern still repeated.

As of now, Cycle 3 has completed the first two phases (pump and correction), only the final phase remains – the blow-off top, which is expected to be extremely strong.

RSI Forecast and Price Impact

Egrag Crypto proposes three potential peaks for XRP's monthly RSI: 80, 87, and 97.

  • In technical analysis, an RSI above 70 often signals overbought conditions.

  • However, in a strong bull market, the RSI can remain high for an extended period, alongside continuing price increases.

The last time the RSI of XRP exceeded 90 was during the bull cycle of 2017 – which was also when XRP reached the peak of $3.40.

If the RSI reaches the aforementioned forecast levels, the scenario of XRP surpassing the recent peak of $3.65 and heading towards $4 – $5, even reaching the double-digit price range, is entirely feasible.

At the time of writing, XRP is trading around $3.12, with a monthly RSI of 73 – indicating that the market is approaching overbought territory.

Hidden Risks

Although the 'blow-off top' scenario opens up prospects for explosive growth, it is also important to note that this could signal a peak in a multi-year cycle.

  • If the RSI approaches the extreme level of 97, it signifies extremely strong market strength.

  • At the same time, it serves as a warning that XRP may be nearing the end of the growth cycle before entering a long-term correction.

Conclusion

Egrag Crypto's analysis emphasizes the important role of the monthly RSI indicator in predicting XRP's price trend.

With 'Cycle Three' in its final phase, investors and the cryptocurrency community are closely watching to see if XRP will replicate a historic breakout.

If the scenario of the RSI peaking repeats as in previous cycles, XRP may not only surpass the $4 – $5 levels but could also reach double-digit prices in the near future.