Ripple’s cryptocurrency XRP recently garnered community attention after registering a 30% rally in July 2024, signaling aggressive buying by the bulls. This was XRP’s largest monthly return since July 2023, when XRP was declared a non-security.
A popular trader has identified a pattern on XRP’s chart that suggests the coin is primed to explode higher.
Is XRP Gearing For A Historic Breakout?
XRP has seen a significant rebound in its price following Ripple’s recent win against the United States Securities and Exchange Commission (SEC) in the long-running feud between the crypto giant and the top securities regulator. XRP has jumped by over 3% over the past week, with its current price sitting at $0.57.
A technical analysis of XRP’s monthly chart shows an emerging bullish triangle pattern. This is a popular technical analysis chart formation that helps traders gauge market sentiment and spot emerging trends. It forms when an asset’s price trades in a narrow range and is often a sign of an imminent major upward price breakout.
$XRP is gearing up for the biggest breakout in it’s entire price history on the monthly
pic.twitter.com/ix9OUSmeTx
— STEPH IS CRYPTO (@Steph_iscrypto) August 9, 2024
The triangle pattern shows that more investors are scooping up XRP coins, and there is a good chance that it will break out above the upper trend line, triggering a stratospheric price rally.
Some pundits often criticize such technical chart patterns as unreliable as past performance is no guarantee of future returns. Nevertheless, it’s hard to ignore. With so many enthusiasts believing in the charts, the bullish breakouts often become a self-fulfilling prophecy.
The bullish posturing on the charts coincides with the Ripple-SEC lawsuit reaching its end. Per some analysts, the newfound legal clarity will help Ripple forge major global partnerships and boost the institutional adoption of its tech. Moreover, it could help XRP secure spot exchange-traded funds (ETFs) on U.S. exchanges.
All Eyes On $1 XRP
Analyzing XRP’s future price prospects, another seasoned crypto analyst going by the online alias Doctor Profit on X has compared the current market patterns and those of 2017, just before the crypto’s parabolic rise.
As per Doctor Profit, the constant rejection of a persistent resistance line could lead to a mega rally, with a potential price target well above the coveted $1 mark by early 2025.
The elite trader stated:
“If we hit another rejection at $0.72, don’t panic. The breakout is inevitable, and I expect targets way above $1 latest by Q1 2025. When XRP pulls a 2017 move and hits the same Fibonacci levels we have seen in 2017, we’re looking at a potential top of $16.”
Doctor Profit shared two ambitious price targets for the seventh-largest cryptocurrency by market cap, positing:
“Best case: $16-$20. Worst case: $4-$7.”
That being said, it’s imperative for traders to closely watch XRP’s price action over the next few days.
Leave a Reply
This site uses Akismet to reduce spam. Learn how your comment data is processed.
