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.
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.
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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.
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.
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.
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.
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