XRP, the sixth largest cryptocurrency by market cap, could be on the verge of a significant price increase, with analysts pointing to a combination of bullish technical indicators suggesting a potential surge above $14. While the recent crypto market rally has subsided, some analysts remain optimistic about XRP’s long-term prospects.
Technical Indicators Pointing Towards Upsurge
Well-respected crypto analyst JD (@jaydee_757) recently identified two technical patterns that have historically preceded significant price increases for XRP. The first pattern is the retest of a multi-year ascending trendline.
Read Also: XRP Massive Pump Coming? Analyst Spots Historically Bullish Golden Cross
This trendline is formed by connecting the lows of XRP’s market capitalization since May 2014. Whenever the market capitalization retests this trendline in conjunction with the formation of a bullish engulfing monthly candle, the digital asset has always experienced substantial rallies.
#XRP – Oh boy… Monthly close today. Last two times $XRP did the following, it went 🚀📈!!
1. Bounce off the multi-year trendline
2. Created a MONTHLY "Engulfing Candle close"!RT/Like for Monthly close update!
(Patreon/Discord – 5 different XRP chart will be posted tonight!)… pic.twitter.com/9angsftlEP— JD 🇵🇭 (@jaydee_757) February 29, 2024
A bullish engulfing candle is a technical pattern formed when a large green candle completely engulfs a preceding red candle. This pattern signifies a potential reversal in the price trend, with buyers overcoming sellers. This comes shortly after the Frankfurt Stock Exchange predicted that XRP could reach triple-digit prices or more.
Historical Precedents for XRP Bullish Run
The first instance of this combined technical pattern occurred in July 2014. Following the retest and the formation of a bullish engulfing candle, XRP’s market capitalization surged by 1,921%, rising from $42.8 million in July 2014 to $865.6 million in December 2014. The price also experienced a notable increase, reaching $0.028 during the same period.
A similar pattern emerged in March 2017, leading to an even more dramatic rise. XRP’s market capitalization witnessed a staggering 16,000% increase, reaching a peak of $128.49 billion in January 2018. This surge was accompanied by a price increase to its all-time high of $3.84.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Analyst’s Prediction and Market Outlook
Based on these historical precedents, JD believes that a similar upsurge could be imminent for XRP, contingent on the confirmation of a closing bullish engulfing candle for the current month. The market cap has already retested the ascending trendline, and a confirmed bullish engulfing candle could signal a potential surge to new highs.
Read Also: XRP Price Analysis: This Technical Analysis Shows Bullish Outlook and Key Levels To Watch
While the analyst acknowledges uncertainty regarding the exact extent of the potential surge, data from the chart suggests a possible $800 billion rise in market capitalization. This would translate to a price of approximately $14.60 per XRP, assuming a stable circulating supply of tokens.
XRP is currently trading at $0.5921, showing a 1.22% decline over 24 hours. It recently climbed above $0.6, but it has fallen again. This poor performance has prompted a prominent crypto figure to predict that XRP will lose its spot in the current bull run.
Follow us on Twitter, Facebook, Telegram, and Google News
