XRP market sentiment is heating up as an analyst identifies a major bullish signal that could potentially lead to a significant rally. Javon Marks, the analyst, highlights that the current XRP setup bears similarities to a price action structure from 2017, where XRP consolidated for over two years in a horizontal range between $0.004 and $0.009. This consolidation phase in 2017 featured hidden bullish divergence, indicating underlying strength in the market despite stable prices. After the divergence, XRP experienced a breakout and surged to a peak of $3.31.
Now, in 2024, XRP is displaying signs of strength once again. Marks’ analysis shows that since May 2023, XRP has been trading in a rectangular consolidation zone between $0.42 and $0.74. This range also exhibits hidden bullish divergence, similar to the pattern observed in 2017. Marks believes that this could be an indication of another explosive breakout. There is a consolidation area marked in a green circle within the chart, which occurred just before XRP’s breakout in 2017. This consolidation area is now playing out in 2024 as XRP forms another structure, suggesting that XRP is building up strength for a breakout. Although there is no set target, Marks’ chart suggests a potential rally towards $17.
At its current price, XRP would need to rally 3,029% to reach the $17 target. It is worth noting that other analysts have also predicted a rally to this price level, with one individual citing the “Bent Fork” as a potential trigger.
In terms of XRP’s current position, on the daily chart, XRP is showing signs of recovery. It is currently trading at $0.5433, having bounced back from a steep decline in late September. During September 30 and October 3, XRP experienced a short-term collapse following the SEC’s appeal notice but managed to stabilize and form a symmetrical triangle. The chart indicates that XRP is presently testing the 0.236 Fibonacci retracement level at $0.5443. For a breakout from the symmetrical triangle to occur, XRP would need to close decisively above the 0.382 Fibonacci level at $0.5674. Once this happens, it could trigger a wave of buying interest and confirm bullish momentum.
The Relative Strength Index (RSI) is currently at 46.63, indicating a neutral reading. However, RSI values above 50 suggest bullish momentum. Given that XRP is trading just below the 50 mark, a slight increase in price could quickly push the RSI into bullish territory.