Analyst Spots XRP’s Third Monthly Candle That Could Trigger Bullish Breakout

Crypto analyst Egrag Crypto sees similarities between XRP’s current chart and patterns from two previous market cycles, both of which preceded significant price increases. He is now watching for a bullish monthly candle near support that could confirm the latest breakout retest and signal potential for another rally.

Egrag Crypto Compares Three XRP Market Cycles

In his analysis on X, Egrag Crypto examined XRP’s monthly price chart, compared it with two previous cycles, and identified three stages in each historical setup: a breakout, a correction, and a third candle that rejected lower prices near major support.

The first stage featured a strong upward move accompanied by an upper wick. XRP subsequently corrected, forming a bearish engulfing candle as the price retested the breakout area. The third stage then produced a bullish rejection candle near support, preceding a substantial upward expansion.

Egrag Crypto described the latest formation as a potential repetition of this sequence. His chart marks previous breakout-and-retest candles around 2020 and 2023, while the current setup appears near the rising yellow trendline extending across XRP’s long-term price history.

The analyst is watching for a similar monthly candle to emerge during the current cycle. He wants to see XRP reject lower prices around the trendline after testing the breakout area. Such a development would resemble the bullish signals he identified in the previous two cycles.

The Third Candle Remains Unconfirmed

Egrag Crypto has not seen the expected candle as a completed formation. Instead, he is waiting for the market to confirm whether the pattern will develop again.

His chart identifies $1.61 and $2.40 as important price levels above XRP’s current position, while another marked level near $1.07 sits around the projected retest area. These levels provide context for the analyst’s technical outlook, although the chart does not establish that XRP will reach them.

The central question is whether XRP can produce a convincing bullish rejection on the monthly timeframe. If XRP forms the expected bullish candle, it would strengthen Egrag Crypto’s comparison with the previous two cycles.

A Similar Pattern Does Not Guarantee Another Rally

That distinction is important because chart patterns provide possible scenarios, not certainty about future prices. XRP would still need to demonstrate the anticipated rejection and subsequent strength before XRP traders could reasonably assess whether the previous pattern remains relevant.

For now, Egrag Crypto’s analysis centers on one development: the third monthly candle. Its formation could strengthen his bullish interpretation, but until the chart confirms it, another major upward expansion remains a possibility rather than a certainty.