ArecentanalysisofXRPpricemovementusingLinearRegressionsuggeststhealtcoinhassomeimpressivepricegrowthpotential.
ThisanalysiscamefrommarketcommentatorEGRAG,whorecentlyappliedthistooltoevaluateXRP’strendlineandfuturepriceforecasts.
EGRAGprojectedapossiblepricerangethatstretchesfrom$5upto$27byanalyzingstandarddeviationbands.TheresultssuggestthatXRP’spricecouldexperiencemoderatetoextremeupwardshifts,dependingonhowitreactstomarketconditions.
XRPCurrentPosition
EGRAGconfirmedthattheXRPpriceiscurrentlytradingnearthelowerendofthe-1standarddeviationband.Thisindicatesthatthealtcoinisoversoldandcouldbeprimedforapricecorrection.
Linearregressionusesstandarddeviationbandstodeterminewhenanassetiseitheroverboughtoroversold.Whenpriceshovernearthelowerendofthesebands,asXRPdoesnow,itsignalsanimminentbouncebacktowardthemeanoraverageprice.
ForXRP,theanalysthasidentifiedthatthemeanreversiontarget–wherethepriceislikelytogravitatebackto–isaround$1.85intheshortterm.
Thisvalueisthemidpointoftheregressionchannel,andreturningtoitwouldrepresentasignificantpriceincreasefromXRP’scurrentlevel.ThismarksthefirstpotentialpriceshiftinvestorscouldexpectasXRPcorrectsfromitsoversoldposition.
XRPPriceTargetsBasedonStandardDeviation
Theupperbandoftheregressionchannel,locatedat+1standarddeviation,iswhereXRPwouldenteranoverboughtregion.
BasedonEGRAG’sprojections,thislevelissetat$5.76inthenearterm.AsXRPapproachesthisprice,itcouldfacesellingpressureasitnearsthetopofitsrange.
However,shouldXRPfollowthesametrajectoryitdidduringitspreviousmajorbullrunin2017,breakingabovethisupperbandwouldsetthestageformuchhigherpricelevels.
XRPPriceStandardDeviation|EGRAGCrypto
Forlonger-termprojections,theanalystsuggeststhatthemeanreversiontargetcouldreach$2.4inthecomingmonthsand$3withinayear.Meanwhile,theupperstandarddeviationbandrisesto$7.31inseveralmonthsand$9.3withintheyear.
XRPPriceOvershootingtheStandardDeviationBands
EGRAGalsoidentifiedapotentialforXRPpricetoovershootthe+1standarddeviationlevel.Thishappenedduringthe2017bullrun,andthesamecouldoccuragain.Shouldithappen,theanalystprovidestwoprojectionmodelsbasedonhistoricaldatafrompreviousXRPpricecycles.
Thefirstmodelassumesa180%priceovershootbeyondtheupperstandarddeviationband.Usingthiscalculation,thepricecouldhit$16ifsuchaneventoccurred.The6-monthtargetunderthisscenariowouldbe$21,whilethe1-yearprojectioncouldreachanimpressive$27.
Meanwhile,thesecondmodeltakesamoreconservativeapproach,predictinga110%overshoot.Forthis,theXRPpricecouldsurgeto$12immediately,reach$26insixmonths,andfallto$20withinayear.
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