XRP Rally Expected: Analyst Predicts Move to $19
XRP has recently shown an intriguing pattern on its weekly chart, as highlighted by the independent analyst Maelius. Updated data from the BITSTAMP feed and the application of a 50-period exponential moving average (EMA) reveal that XRP is currently trading around $2.23, just above the pivotal support level of approximately $1.78 dictated by the EMA. This price movement suggests a compressed structure akin to what was seen during the 2017 price rally.
Chart Analysis: The Giga Bull Flag Formation
The term ‘giga bull flag’ is utilized by Maelius to describe a significant consolidation pattern that XRP has been forming over the past four months. This structure is characterized by a series of lower weekly highs which rise towards a horizontal resistance at $3.40, contrasted by higher swing-lows positioned around $1.61, creating a converging wedge. The EMA50 acts as a dynamic support level, now coinciding with the lower edge of the bullish flag.
Historical Context: Learning from 2017
Maelius illustrates the current XRP pattern by overlaying it with the price advance from 2017, revealing striking similarities.
In the preceding cycle, XRP saw a monumental vertical surge after a similar consolidation, eventually soaring from below $1.00 to over $3.00 in just weeks. By projecting these historical movements onto the current price action, Maelius signals that, following the resolution of the current flag, XRP could break through the $4 resistance and even reach multi-digit territory, identifying the $19 mark as the target based on previous price action. This analytical technique of fractal patterns is often used in evolving market cycles to predict potential future movements.
Momentum Indicators: RSIs and Market Sentiment
Technical indicators also bolster Maelius’s hypothesis. The weekly Relative Strength Index (RSI) displays two peaks reminiscent of the 2017 run, providing critical comparisons. The first major surge earlier this year saw the RSI spike into the high-80s before retracting to around the mid-40s, a range now considered ‘FLAT’ by the analyst.
- RSI Peaks: Marked as “1” and “2” on both historical and current sections, emphasize the cycles of price momentum.
- Projected Momentum Pulse: An arrow extending toward the mid-90s indicates anticipation of another surge in momentum before the current structure exhausts.
Technical Levels to Monitor
The immediate technical landscape surrounding XRP is crucial for traders. Notably:
- Upper Flag Boundary: Observing price action near the $2.50 mark could confirm the completion of the giga bull flag.
- EMA-Based Support: The support level around $1.78 provides a safety net; closing below this could invalidate the bullish pattern.
- Targets Above: A confirmation above $2.50 could lead to targets of $4.40 and $6.00 based on historical price levels.
As usual, trading confirmations are critical. Particularly, traders are advised to gauge trading volume and broader market sentiment before fully relying on these fractals as historical repeats of price movement.
Market Outlook and Risks
Maelius provides a risk-assessed outlook, indicating that even in the most unfavorable scenario, there remains the potential for one final impulse before a possible downturn. “Even the worst case is there will only be one impulse left. Bearish, right?!” reflects a cautious optimism about XRP’s future performance.
At press time, XRP fluctuates around $2.23, a figure that may change dramatically with developments both in the crypto market and regulatory environment surrounding digital assets. As market conditions evolve, the outlook for XRP remains uncertain but full of potential.
Source: newsbtc