French crypto analyst Egrag just dropped their latest technical analysis on XRP, evaluating the altcoin’s price setup from two different perspectives. The seasoned market charter applied both arithmetic and geometric averaging, which explains XRP’s latest three bull runs from a math stance.
Deciphering The ‘Alpha Base’ Theory On XRP
Egrag is quick to explain why this method is less speculative than basing the XRP price analysis purely on smoothed moving averages or Fib Retracement. “No fantasy numbers. No random targets. Just Math.” Regardless, the historical price data doesn’t guarantee a similar response in the future.
The historical precedent goes as follows: the three bull cycles produced 2,405%, 1,002% & 1,250% rallies, respectively. This puts the cumulative arithmetic average to 1,552%, while the geometric mean is 1,444%, hypothetically taking XRP’s price to roughly $13, according to Egrag.
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There’s also an important distinction between the geometric mean and the cumulative arithmetic average, as one of them is more precise, the analyst argues. The arithmetic average treats each cycle’s gain equally.
The geometric mean accounts for compounding across cycles, making it the more conservative of the two figures. Egrag noted that the geometric mean “measures the average compounded multiplicative expansion across those three cycles”, affirming: “I am with the Geometric Mean.”
XRP Shows Resilience Along With Top Alts
Surely, the bull cycle data on XRP’s price is well-documented. However, the effervescent world of crypto is prone to price fluctuations from outside factors, including the ongoing political tensions, often resulting in rising gas & oil prices. That pressure doesn’t spare blue-chip alts.
What it does is a test: as noted by Wintermute in their recent market recap, major-cap altcoins managed to stay afloat while the chip-infused IT sector’s drawdown rattled the traditional stock markets massively a few weeks back.
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