XRP has been the subject of much speculation lately. While the broader cryptocurrency market experienced a downturn in April, some analysts see the potential for XRP to break free from its current downtrend.
Jonathan Carter (@JohncyCarter), a market technician and well-known analyst, believes XRP is positioned for a significant rally, potentially reaching mid-term targets of $0.93 and $1.68. This prediction hinges on XRP breaking out from a multi-year symmetrical triangle pattern.
The Symmetrical Triangle
A symmetrical triangle is a chart pattern formed by converging trendlines, one sloping upwards and the other downwards. This pattern indicates a period of consolidation, where buying and selling pressure is relatively balanced.
XRP’s price movement over the past three years has formed a prominent symmetrical triangle. The upper trendline represents resistance, while the lower trendline acts as support. A breakout from this pattern in either direction signifies a potential shift in market sentiment.
An Impending Breakout
Carter specifically focuses on XRP’s price movements on a weekly timeframe. XRP experienced a significant drop to around $0.42 in April, which led to a retest of the lower trendline of the symmetrical triangle. Following a period of decline, this retest can be interpreted as a sign of potential buying pressure emerging.
While the recent market correction pushed XRP’s price downwards, Carter believes this downtrend may be nearing its end. Like other analysts who have spotted similar symmetrical triangles, Carter anticipates an imminent breakout from the symmetrical triangle, suggesting a potential reversal of the current price trajectory.
Potential Price Targets
Should a breakout occur, Carter outlines a two-step price target. The first target sits at $0.93, which represents XRP’s highest point since July 2023. XRP surged to this level in July 2023 following a positive ruling in the ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). However, XRP encountered significant resistance and fell almost immediately.
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The analyst expresses confidence in XRP surpassing the $0.93 barrier this time around. This optimism paves the way for his mid-term target of $1.68. Reaching this price point would represent a substantial gain of over 219.2% from XRP’s current price of $0.5263.
Several technical indicators add weight to Carter’s prediction. The MVRV (Market Value to Realized Value) Ratio for XRP has recently dipped to a low value, suggesting the current market price might be undervalued compared to the average price at which XRP tokens were previously traded.
Furthermore, the XRP Commodity Channel Index (CCI) on the 1-hour chart reinforces the possibility of undervaluation. While some analysts project even higher targets based on bullish signals, Carter adopts a more conservative mid-term approach.
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