Ripple (XRP) may be poised for a significant price surge, according to a recent analysis that identified a familiar pattern in its historical price movements. This pattern, which led to breakouts in the 2017 and 2021 bull markets, could signal a potential return to $1 for the cryptocurrency.
Historical Trends Point to a Bullish Outlook
A review of the monthly XRP/USD chart reveals that XRP experienced successful breakouts from descending triangles during both the 2017 and 2021 bull markets. In each instance, these breakouts were followed by substantial price increases.
Currently, XRP appears to be on a similar trajectory. While the cryptocurrency has not yet confirmed a breakout from a descending triangle, its strong support level between $0.43 and $0.48, combined with the growing momentum in the broader market, suggests that a bullish move may be imminent.
If XRP successfully breaks out of the descending triangle, it could see a price increase of up to 114%, potentially reaching $1.08 from its current level.
Technical Indicators Support Bullish Outlook
The Money Flow Index (MFI) provides further support for a bullish outlook. In both 2017 and 2021, the MFI experienced a significant decline before XRP’s price surge. Currently, the MFI appears to be following a similar pattern, suggesting that a price increase may be on the horizon.
Immediate Price Targets
Before XRP reaches $1, it may need to overcome several intermediate price targets. The altcoin’s immediate goal is to reclaim the 38.2% Fibonacci ratio at $0.53. If it can break through this resistance level, it could increase its chances of reaching $0.58.
However, it’s important to note that the market remains volatile, and XRP’s price could be impacted by broader market trends and unforeseen events. If XRP fails to break through the $0.53 resistance level, it may experience a pullback to $0.50.
Based on historical patterns and technical indicators, XRP appears to be in a strong position for a potential price surge. However, the cryptocurrency market remains unpredictable, and investors should approach any investment decisions with caution.
Also Read: XRP Price Prediction – Analyst Predicts $50 Target Using Power Law
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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