Despite recent days of stagnation, the XRP price has displayed strong bullish tendencies in the past. In fact, an analysis of the XRP/USD trading pair’s 1-month chart reveals an extremely rare occurrence in the form of three consecutive monthly green candles. This phenomenon has only been documented twice in the history of the cryptocurrency, making it a significant point of interest for crypto analyst Egrag.
Egrag delves into the specifics of two distinct historical precedents that followed similar formations. The first instance dates back to March to May 2017, where XRP recorded three consecutive green candles. This was followed by a 5-month consolidation phase, which ultimately led to an astounding 1,500% surge in the XRP price within just two months. Drawing from this pattern, Egrag suggests that if history were to repeat itself, investors could anticipate a potential surge to $10 by the 1st of April 2024.
The second instance refers to the period from December 2015 to February 2016, during which XRP experienced approximately a 102% rise over three consecutive months. This was followed by a longer 12-month consolidation phase. However, patience paid off once again as the XRP price began an extraordinary 8,000% rally in March 2018. A replication of this scenario could result in a potential skyrocketing of XRP’s price to $50, commencing on the 1st of November 2024.
Egrag offers an average price target of $30, while also hinting at a secret target of $27. These projections provide further excitement and anticipation for XRP investors. At the time of writing, XRP is trading at $0.60333.
Recent market trends have seen the XRP price trapped in a tight range between the 20-day and 50-day Exponential Moving Averages (EMA). A breakout to the upside or downside appears imminent. If an upside breakout occurs, the decisive price level to watch is $0.627, beyond which XRP could challenge the 0.5 Fibonacci retracement level at $0.688.
Conversely, a downside breakout would signal a test of support at the 100-day EMA, currently at $0.575. It is critical for the bulls to defend this level and prevent a further decline towards the 0.236 Fibonacci retracement level at $0.552, which coincides with the 200-day EMA. The convergence of these indicators emphasizes the importance of this price level.
The XRP price’s current consolidation phase may be deceiving, as historical patterns and precedents suggest the potential for significant surges in the future. The occurrence of three consecutive green candles in XRP’s monthly price chart has only been witnessed twice before, leading to substantial price increases in both instances. While projections vary, targets ranging from $10 to $50 capture the enthusiasm of XRP investors.
As the cryptocurrency market continues to evolve, it is important for investors to closely monitor XRP’s price movement and navigate the potential opportunities that may arise. While no one can predict the future with certainty, historical patterns can provide valuable insights and guide investment decisions.
Disclaimer: The information provided in this article is based on historical data and speculative analysis. It should not be interpreted as financial advice. Investors are encouraged to conduct their own research and seek professional advice before making any investment decisions.