XRP 5,000% Surge Imminent as Analyst Says This Chart Could Rekindle the Spark
thecryptobasic.com 21 August 2024 04:41, UTC Analyst Tylie Eric calls attention to an XRP consolidation pattern, suggesting that a surge of at least 5,000% could be imminent.
The market watcher presented this assertion in a recent analysis of X amid the ongoing market uncertainty. The accompanying chart shows a bullish pattern that has formed over the last few years.
XRP to $32
Notably, it features a large symmetrical triangle, a pattern several analysts have identified on multiple timeframes. This pattern has been forming since early 2021 following XRP’s drop from the $1.96 high. Following the drop, XRP has been seeing a series of lower highs and higher lows, compressing into a tighter range.
As the apex of the triangle approaches, the likelihood of a significant price movement increases. The breakout from this pattern is expected to be explosive, given the extended period of consolidation. The chart projects a future scenario where XRP’s price skyrockets to $32, marking a potential 5,261% increase from current prices.
Eric’s chart highlights key resistance levels that XRP would need to clear to reach this ambitious target. The most immediate resistance, as per the chart, seems to be around $3.5, the current all-time high attained in January 2018.
XRP Trades Above 50-Day EMA
Meanwhile, XRP is currently trading at approximately $0.5970. Recently, XRP retested its 50-day Exponential Moving Average (EMA) at $0.5563. The retest was significant, as XRP managed to hold above this level, suggesting that the bulls could be gaining control.
Trading comfortably above the 50-day EMA typically signals bullish momentum for the mid-term, which could see XRP testing higher resistance levels in the short term.
The Pivot Point indicator on the chart provides further insight into potential price movements. The nearest resistance (R1) is at $0.6597, a level that XRP will need to clear to continue its upward momentum. If XRP breaks this level, the next resistance points are $0.7248 (R2) and $0.8300 (R3), which could act as short-term targets for traders.
On the downside, the first support (S1) is at $0.4492, followed by $0.3842 (S2) and $0.2789 (S3). These levels would be crucial if XRP faces selling pressure, as they could provide a floor for the price to bounce back.
