XRP's Technical Setup Suggests a Major Breakout, Mirroring 2017's 2,500% Surge

Crypto analyst EGRAG CRYPTO has outlined a compelling technical case, drawing parallels to XRP's historic 2017 price action

Crypto analyst EGRAG CRYPTO has highlighted a technical pattern in XRP that could lead to a massive 2,500% surge, potentially pushing the token to $33 within 28 days.

The analyst, known for his bold outsized price projections, recently shared his technical analysis, drawing parallels between XRP's current setup and the one it formed in 2017.

During the 2017 bull market, XRP shot up from $0.17 to $5 in 175 days, showcasing an incredible 2,500% surge.

"We’re seeing similar XRP price action today, with the 21 EMA closing above and only a minor wick. If this pattern holds, XRP could target the Fibonacci 1.618 extension level, placing its price potential between $27 and $33."

While highlighting the difficulty in accurately timing the market, EGRAG still believes that past cycles offer valuable insights.

"Even though I know it might backfire, I still give it a shot. And if the pattern continues, we could see XRP testing the $27-$33 price range in the coming weeks."

Before reaching the ambitious $33 mark, XRP must first clear several critical resistance levels. The first major level to consider is the Fibonacci 1.272 level of $8.38, and then the Fib 1.414 level of $13.67.

In the short term, XRP is currently ranging at the Fibonacci 0.888 retracement level of $2.23, and major support levels are at $1.78 and $1.57.

Traders are closely watching the $2.00 level, which is a psychological support price. Staying above this price may be the foundation for additional upside while breaking support might send the price down to $1.50.

Despite recent volatility, there are signs of strong investor belief in XRP. Whale accumulation is on the rise, with huge wallets containing between 100 million and 1 billion XRP having added another 2 billion tokens over the last week.

This aggressive withdrawal has come along with a rush of exchange withdrawals, with 99 million XRP withdrawn at $2.30—a 94.12% increase from the previous day. Such activity suggests that investors are moving XRP off exchanges for long-term holding, often seen as a bullish signal.

Options market data also shows heightened interest in XRP's price potential.

Despite the recent price decline from its $3.40 peak in January, the $5 call option remains the most popular bet on Deribit, with a notional open interest of $3.84 million.

However, analysts caution that many of these positions are likely covered calls rather than outright bullish bets. According to Lin Chen, Deribit's Asia Business Development Head, "Most of these are covered calls," meaning traders are selling higher strike calls while holding XRP, allowing them to generate yield while managing risk.

Can XRP hold its ground above $2?

XRP's ability to maintain its current levels will be crucial in determining whether the projected breakout occurs. While the token has demonstrated resilience, technical indicators remain mixed. The Moving Average Convergence Divergence (MACD) has turned negative, signaling potential short-term weakness, and active addresses on the XRP Ledger have dropped by 50%, suggesting a decline in network activity.

However, should whale accumulation continue and sentiment shift, XRP could see renewed buying pressure that propels it toward higher price targets. A decisive break above the $2.50-$3.00 range could set the stage for a much larger move in line with EGRAG CRYPTO's projections.

Looking forward, XRP appears to be at a critical juncture, with both bullish and bearish forces at play. While the historical precedent suggests that a 2,500% surge is possible, market conditions, liquidity, and investor sentiment will ultimately determine whether XRP can replicate its past performance.

For investors, this presents both an opportunity and a risk. If XRP holds key support levels and buying momentum accelerates, it could indeed be on track for a significant rally.

However, given the inherent unpredictability of the crypto market, traders should remain cautious and monitor developments closely.

As the next few weeks unfold, XRP holders will be watching closely to see whether history repeats itself—or if this ambitious price projection remains out of reach.

This article was originally published on Benzinga