XRP is moving in sync with the overall cryptocurrency trend and successfully holding above $3. According to the latest technical analysis by renowned cryptocurrency chart analyst Egrag Crypto, XRP's price trend is about to enter a critical phase that will drive its gains far beyond double digits. Its monthly relative strength index (RSI) is currently in what he calls the 'three-cycle' phase, indicating that explosive growth is imminent.
Large pumps, corrections, and pressure release tops
Egrag's framework is built on the recurring patterns that always exist in the XRP monthly RSI indicator. According to his analysis, the first phase of the cycle usually sees a significant rise in RSI, followed by a second phase with a pullback, and finally a third phase, which always ends with a parabolic rise.
Cycle 1 and Cycle 2 occurred during the XRP bull markets in 2017 and 2021, respectively, both exhibiting the same sequence, although with different intensities. The 2017 rally far surpassed the 2021 rally, which was suppressed by the Ripple lawsuit. Therefore, the RSI pattern in 2021 is less pronounced but still follows the same sequence.
The current trend is marked as the third cycle in the chart below, having undergone a phase of rise and pullback. According to analysts, what remains is the third phase. This will push XRP's price to the explosive top of the RSI and may break into a new range.
Egrag Crypto predicts that XRP's monthly RSI peak in the current cycle could reach three targets: 80, 87, and the more ambitious 97. These numbers are derived from the observed RSI trajectories in the past two cycles and forecasted based on XRP's current RSI condition.
What does this mean for XRP's price?
If XRP's monthly RSI reaches levels like 80, 87, or even 97, it will be one of the strongest overbought signals in the asset's history. The last time XRP's monthly RSI broke 90 was during the bull market of 2017, when XRP's price surged from less than $0.1 to its then historical high of $3.40.
From a technical perspective, an RSI above 70 indicates that the asset is trading at an overheated price, but in a bull market, this condition may persist for a long time during price increases. For XRP, such a high RSI reading is likely to coincide with the historical highs set during the 2017 bull market. In fact, this could lead to XRP's price breaking its newly established historical high of $3.65 and surpassing $4, $5, or even double digits.
A breakout of XRP RSI above 90 may also indicate that the price might have reached a new multi-year high. As of the time of writing, XRP's monthly RSI is 73. XRP is trading at $3.12.
