XRP, the cryptocurrency associated with Ripple, has experienced a period of consolidation following a significant rise in its price. However, analysts have noticed an interesting pattern in the XRP monthly price chart that could have bullish implications for the future. The pattern in question is a series of three consecutive monthly green candles, a phenomenon that has only occurred twice in the history of XRP. As the market approaches the monthly close, a confirmation by a close above $0.5987 could mean the formation of the third monthly green candle for XRP.
Analyst Egrag delves into the historical precedents that followed similar formations in the XRP price chart. In the first scenario, after three consecutive green candles from March to May 2017, XRP entered a 5-month consolidation phase. However, this consolidation phase had an extremely bullish effect, leading to a staggering 1,500% surge in the XRP price within two months. Egrag suggests that if XRP follows this historical pattern, investors can anticipate a potential surge to $10, starting from April 1, 2024.
The second instance refers to the period from December 2015 to February 2016, when the XRP price rose by approximately 102% in three consecutive green months. This was followed by a longer 12-month consolidation phase. However, the wait was worth it again, as in March 2018, XRP started an extraordinary 8,000% rally. If history repeats itself, this scenario would imply a potential skyrocketing of XRP’s price to $50, beginning on November 1, 2024.
While the historical precedents suggest the possibility of significant price surges for XRP, Egrag offers an average price target of $30. He stated, “XRP army stay steady, the average of these two targets lands at $30, you know that I always whisper to you my secret target of $27. Hallelujah, the anticipation is palpable!” At the time of writing, XRP was trading at $0.60333.
In terms of technical analysis, the XRP price has been trading within a tight range between the 20-day and 50-day Exponential Moving Averages (EMA) for four days. This consolidation has led to a potential breakout to the downside or upside. If an upside breakout occurs, the price could target the 0.5 Fibonacci retracement level at $0.688, with the decisive level being $0.627. On the other hand, a downside breakout would find the first support at the 100-day EMA at $0.575, which must hold to prevent the price from falling towards the 0.236 Fibonacci retracement level at $0.552, close to the 200-day EMA. The convergence of both indicators signifies a critical price level that the bulls must defend.
Interestingly, Bitcoin has recently decoupled from XRP, as well as Binance Coin (BNB), while maintaining a correlation with Dogecoin and Cardano. This divergence in price movements suggests that XRP’s performance may be influenced by unique market factors or investor sentiment.
The XRP price is currently in a consolidation phase after a significant rise, but analysts have identified a rare bullish pattern in the monthly price chart. Historical precedents suggest the potential for substantial price surges, with targets ranging from $10 to $50. However, technical analysis indicates the possibility of a breakout in the near future, which could determine the direction of XRP’s price. Traders and investors should closely monitor these developments to make informed decisions about their XRP holdings.
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