The XRP price is currently showing a triangle formation on its chart, which could potentially signal an impending rally. This pattern is significant because it led to a major rally in the past, indicating that history may repeat itself. The triangle formation has been identified by the crypto analyst TradingShot, who has pointed out several bullish indicators aligning at this time.
Some of the indicators highlighted by the analyst include the price closing below the 1W MA50 and 1W MA200. While this might initially seem bearish, it can actually be a signal for investors to start buying at lower prices, thereby driving the price up. Moreover, the 1W RSI dropping to 40.00 is seen as a buying opportunity historically. Additionally, the XRP price is currently testing the bottom with the higher lows trend line, forming a triangle structure reminiscent of the 2013-2017 period.
The last time a triangle structure similar to the current one appeared was in 2013, and it eventually led to a breakout in 2017, resulting in the XRP price soaring to new all-time highs. Thus, the appearance of this triangle structure now hints at a possible start of another bullish trend that could propel the altcoin’s price towards new all-time highs. If the XRP price follows the 2013-2017 trend and breaks out, the analyst predicts a potential new all-time high.
To confirm the bullish trend, the analyst suggests that the price must surpass the 1W MA200. If this occurs, TradingShot estimates a price target as high as $4.5, signifying an over 800% increase from the current price of $0.47. However, it is important to note that there is always a risk that the bullish trend may not materialize as anticipated.
The technical analysis of the XRP price suggests the possibility of an impending rally based on the triangle formation and various bullish indicators. While historical patterns indicate a potential for significant price growth, it is essential to be aware of the inherent risks involved in trading cryptocurrencies. Investors should stay informed and exercise caution when making financial decisions in the volatile crypto market.
