Triangle Formation That Sparked The 2017 XRP Rally Returns, What’s The Target?
The XRP price is currently forming a triangle pattern on its chart, which has historically led to a significant rally. This pattern is reminiscent of the one seen seven years ago, suggesting that XRP may be poised for a bullish wave.
The latest analysis on TradingView by crypto analyst TradingShot highlights the emergence of this triangle formation. Several indicators, including the price closing below its 1W MA50 and 1W MA200, are signaling bullish sentiment in the market. Although this might initially seem bearish, it often serves as a buying opportunity for investors looking to take advantage of lower prices. Additionally, the 1W RSI dropping to 40.00 further reinforces the potential for an upward move.
Another important observation made by the analyst is that the XRP price is currently testing the bottom with the higher lows trend line, contributing to the formation of the triangle structure. This structure, last seen between 2013 and 2017, played a crucial role in driving the XRP price to new all-time highs. Therefore, the reappearance of this triangle pattern suggests the start of another bullish trend that could propel the altcoin’s price to new all-time highs once again.
If the XRP price follows the trend observed between 2013 and 2017 and breaks out of the triangle formation, the analyst predicts a new all-time high. However, for this bullish trend to be confirmed, the price would need to surpass the 1W MA200.
In the event that the altcoin manages to break above this key level, TradingShot believes the price could reach as high as $4.5. Such a move would represent an impressive 800% increase from its current value of $0.47.
It is important to note that while this bullish scenario is plausible, there is also a chance that the trend may not materialize. If XRP fails to break the 1W MA200, the analyst advises that the XRP community would need a new narrative to maintain their optimism, as the long-term pattern would have been invalidated.
Ultimately, the XRP market awaits confirmation of the triangle breakout to determine whether a bullish rally is on the horizon.