A recent cryptocurrency analyst expressed disappointment after his previous technical forecast for Ripple’s XRP token largely turned out to be inaccurate. However, he still maintains hope for a final and exuberant recovery ahead.
In a tweet, EGRAG Crypto emphasized the formation of what he called the “Helheim Gateway” pattern on the XRP/Bitcoin chart earlier. According to classical chart theory, this formation often leads to a strong breakdown and severe midterm losses.
While EGRG noted the speculative price target with a white circle, he warned of the increasing risk of the dominant bearish structure. Since then, XRP has undergone a short-term rally and breakout but quickly reversed into a false price trap.
“At the time, I drew a White Circle with ‘?’ as a potential target…Since then, we’ve experienced a rally and multiple closes above the declining wedge pattern, only to find out it was just a false breakout,” the analyst tweeted.
With this cryptocurrency having lost the anticipated bullish trend and breaking through multiple support levels, the current price is definitely trading below the Helheim Gateway region warned by EGRG. Failure to hold this level increases the risk of continued selling pressure.
XRP could rise to $7
However, despite the seemingly accurate prediction of the analyst, EGRG still maintains a long-term optimism for XRP, extending the strong rally into early 2023. He hypothesized that short-term stability could become a temporary reality, similar to the bullish chart forecasts for the USD.
EGRG mentioned that if XRP mimics 2017, then another downturn could occur before XRP embarks on a journey to “Valhalla,” a parabolic and exhilarating rally that EGRG believes will lead XRP to reach $7 despite the recent carnage.
According to CoinGecko data, Ripple XRP is currently trading at $0.5414, with a 2.2% decrease in value in the past 24 hours.
