JD (@jaydee_757), a popular crypto analyst on X, has highlighted a significant technical indicator that could foreshadow a major price movement for XRP. According to JD, once XRP’s 7-year Relative Strength Index (RSI) trendline breaks, investors should prepare for a parabolic rally.
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. It oscillates between zero and 100. It’s typically used to identify overbought or oversold conditions in a market. An RSI above 70 is considered overbought, while an RSI below 30 is considered oversold.
For XRP, breaking a 7-year RSI trendline is a notable event. JD’s chart shows that XRP has attempted this three times but failed. Its first attempt came shortly after reaching its all-time high in January 2018, but the rally was rejected. Following this, XRP’s RSI stayed low until 2021, when it made another attempt as it surged to a multi-year high of $1.96.
However, this attempt was also rejected. XRP was just rejected from the third attempt, but is touching the trendline, and might break out at any time.
Another analyst drew attention to this RSI trendline in late July, and a breakout suggests a significant shift in market sentiment, potentially heralding a substantial price rally. The breaking of such a long-term trendline could indicate that the bearish phase has exhausted and a new bullish phase is commencing
JD’s Analysis and Predictions
JD emphasizes the importance of taking “calculated profits” during the anticipated rally, warning against the complacency of holding onto the asset without a strategic exit plan. He notes, “Do not be the 95% who ‘knows what they hold’ crashing back down to my orange box!”
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JD also noted that he predicted the bottom of the current bull market. He now attempts to predict the market’s peak. However, as he warned, investors must not hold XRP for too long to avoid falling back after it hits the cycle top.
JD touched on the emotional aspect of trading in his statement, “It’s going to be FUN but very SAD bull cycle for the majority! It’s the honest truth.” This highlights the dual nature of market rallies, where excitement and euphoria can quickly turn to disappointment and regret if investors do not manage their positions wisely.
Other analysts have also referenced the 95% of investors who will miss out on XRP gains, and carefully planning out an investment strategy could help avoid those risks and earn profits from XRP at its peak.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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