XRP and XLM have been on the radar of many investors, but their price movements in recent years have left some questioning their future. However, Charting Guy (@ChartingGuy), a prominent crypto analyst, has identified patterns that suggest significant potential for both coins.
Symmetrical Triangles and Breakout Potential
The core of Charting Guy’s analysis hinges on the symmetrical triangle patterns identified in XRP and XLM’s price charts.
Notably, XRP and XLM have been consolidating within these symmetrical triangles for the past six years. While some might interpret this extended consolidation period as stagnation, the analyst emphasizes the importance of the pattern itself, as they often precede massive breakouts.
Read Also: Based On 3 XRP Trend Triangles, Bullish Chartist Predicts Minimum Target Of $33. Here’s the Timeline
The analyst highlights a quote by another prominent analyst, CoinsKid (@Coins_Kid), “compression leads to expansion,” where the extended consolidation period can be seen as compression, building up pressure for a price explosion.
$XRP & $XLM will melt faces very soon.
2 coins that have traded sideways or as some say, “done nothing” for 6 years..
most people write them off as dead coins.
but, as a technical analyst, i don’t care too much about narratives or sentiment.
the charts tells the story. 🧵
— Charting Guy (@ChartingGuy) March 27, 2024
Triangle Size and Potential Targets
The correlation between both cryptocurrencies is well known among investors, and Charting Guy emphasizes the unusual size of the symmetrical triangles for XRP and XLM. Compared to typical triangle patterns, these formations cover a much larger price range, suggesting a potentially larger breakout when it occurs.
For XRP, the analyst identifies two potential price targets based on the dimensions of the symmetrical triangle. The first target zone falls between $10 and $13. A more aggressive target, based on the entire height of the triangle, is $38.
XRP’s Potential Role in the New Financial System
The analyst countered concerns regarding the massive market cap required for his predictions with the concept of Total Addressable Market (TAM). He believes they could play a pivotal role as bridge currencies in the emerging financial system.
In this scenario, XRP and XLM could act as neutral intermediaries, facilitating transactions between Central Bank Digital Currencies (CBDCs). He believes the volume of this potential market could send their market caps to quadrillions of dollars.
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— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: Analyst Says XRP Is on the Verge of a Major Breakout. Here’s why
More Bullish Predictions
The analyst also explored a potential path to a mind-blowing $589. He bases his target on a bull flag pattern and a fractal pattern observed in XRP’s price movement from 2017.
While acknowledging the highly speculative nature of this prediction, Charting Guy proposes that this price target could be achievable in the long term if Ripple, the company behind XRP, successfully achieves its goals.
Charting Guy’s analysis presents a highly bullish case for XRP and XLM. Both cryptocurrencies have been described as the Pepsi and Coca-Cola of Central Bank Utility, and they could soon become the most dominant forces in the crypto market.
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