$XRP Could See Massive Price Rallies Based on Technical Indicators, Analyst Says
In a recently published analysis of the native token of the XRP Ledger, $XRP, a popular cryptocurrency analyst has identified a potentially bullish pattern in the cryptocurrency’s chart, pointing to technical indicators including the Moving Average Convergence Divergence (MACD).
In his analysis, the popular analyst, who goes by JD on the microblogging platform X, noted that the MACD and the Average Directional Index with Directional Indicators (ADX/DI) have been utilized in the past to predict substantial price rallies for XRP. MACD, a momentum-based trend-following indicator, helps to pinpoint possible shifts in a cryptocurrency’s trend, while ADX/DI is used to assess the strength of a trend and its direction.
The analysis shows a pattern that occurs when the MACD line rises above the signal line on a monthly timeframe. This is additionally corroborated by an ADX/DI cross, pointing to a potential bullish rally for the cryptocurrency.
Reflecting on the current state of the market, the analyst underlined the necessity of both technical indicators confirming bullish crosses. Drawing from historical precedents, he noted that XRP had experienced staggering price surges, ranging from 12x to 634x within a year following such confirmations.
Looking at historical data, the four-year phase spanning December 2013 to February 2017 saw XRP face a significant downturn, before breaking out and seeing a stunning 63,400% surge, achieving an all-time high of $3.3170 in January 2018, 306 days after the MACD and ADX/DI crosses.
st the all-time high, XRP saw a prolonged downtrend for over two years until October 2020, before a significant reversal on these technical indicators led to a 1,200% surge in XRP over 365 days, peaking at $1.96 in April 2021.
Jaydee’s current observations point to a possible breakout for XRP, which has been on a downward trend for the past two years, echoing the patterns seen in 2017 and 2020. His predictions indicate a potential spike in XRP’s price, possibly by 2024 or 2025. The analyst, nevertheless, suggested traders should be cautious as short timeframes often generate misleading signals.
In a follow-up post, the analyst noted that historically, it took XRP a year before it managed to reach new highs after the technical indicators flashed a bullish signal.
As CryptoGlobe reported, another crypto analyst has recently predicted XRP could soon see a significant surge, based on an ascending triangle that is forming on the cryptocurrency’s six-month chart, which indicates a possible 430.6% price increase that could see it rally to $3.74.
Featured image via Pixabay.
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