- The crypto market lost over $180 billion on April 6, with a 6.82% drop overall.
- XRP hit a five-month low at $1.61 after dropping 10.39%, later rebounding to $1.87.
- Analyst EGRAG sees bullish potential, citing past 1,000%-2,700% XRP rallies after crashes.
The cryptocurrency market experienced significant volatility over the weekend, resulting in over $180 billion in losses on Sunday, April 6. This steep decline represented a 6.82% drop in the overall market capitalization. Among the affected assets was XRP, which declined sharply during this period.
XRP saw a 10.39% loss on Sunday, followed by a further drop to $1.61 on Monday, marking a five-month low. Although the asset rebounded to $1.86 on Tuesday, it still recorded an intraday loss of 1.59%. Despite the overall negative trend, market analyst EGRAG Crypto maintains a bullish outlook on XRP.
EGRAG has emphasized that similar declines have occurred in the past during bullish cycles. Drawing on historical data, he suggests that the current drop does not necessarily signal a long-term downturn. He references its behavior in previous bull runs as supporting evidence for his analysis.
XRP Correction Reflects Past Moves
The analyst pointed to the 2017 and 2021 market cycles, where XRP experienced similar patterns. In 2017, XRP fell 73% from its peak to a local bottom. During this correction, the asset repeatedly tested the 200-day moving average (MA) and even dropped 25% below that support level.
Currently, XRP appears to be following a comparable path. After the recent crash, the asset once again finds itself near the 200-day MA, which now sits at $1.85. The drop to $1.61 on Monday represents a 13% decline below this support. The cryptocurrency has since recovered slightly and is now trading at $1.87.
XRP Eyes Massive Gains
According to EGRAG, this type of retest has historically preceded major rallies. He previously stated that a retest of the 200-day MA could occur during a downturn, and now that it has, a potential upward movement may follow. However, he cautions that a death cross — where the 50-day MA crosses below the 200-day MA — could invalidate this outlook.
At present, the 50-day MA is positioned at $2.31, above the 200-day MA. As long as the death cross does not occur, EGRAG believes the bullish scenario remains viable. “As long as the 50 MA hasn’t crossed bearish with the 200 MA, and #XRP pumps back to the 200 MA then gets rejected, we are still in a #BULLRUN!,” he noted.
Should it replicate its previous bull market behavior, EGRAG projects that the asset could either increase by 1,000% or surge as much as 2,700% from its recent bottom. A 1,000% rise from $1.61 would bring the price to $17.7, while a 2,700% increase would result in a price of $45.1.
Despite the recent downturn, EGRAG continues to stand by his optimistic projection. He asserts that it remains within bullish territory as long as the current price action does not break significantly below key technical levels. This confidence is grounded in recurring market behavior that has historically led to strong rebounds.
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