The XRP price has shown some consolidation in recent days after experiencing a significant increase of over 52% in just 18 days from mid-October to early November. The shorter time frames indicate a clear consolidation phase. However, a closer look at the 1-month chart of the XRP/USD trading pair reveals a strong bullish trend in the XRP price. Crypto analyst Egrag has drawn attention to an extremely rare phenomenon in the XRP monthly price chart that has only occurred twice before in the history of the cryptocurrency – a series of three consecutive monthly green candles. As the market approaches the monthly close, there is a possibility of confirming the third monthly green candle if the price closes above $0.5987. Egrag notes, “Get ready – within the next [few] hours, we’re poised to seal another trio of consecutive green candles.”
Egrag explores two distinct historical precedents following the occurrence of three consecutive green candles. In the first scenario, XRP recorded three consecutive green candles from March to May 2017, followed by a 5-month consolidation phase. However, the consolidation phase had an extremely bullish effect, as the XRP price surged by a staggering 1,500% within two months after it ended. Egrag suggests that if XRP’s price action were to emulate this historical pattern, investors could anticipate a potential surge to $10, starting from the 1st of April 2024.
The second instance refers to the period from December 2015 to February 2016, where the price rose by approximately 102% in three consecutive green months. This was followed by a longer 12-month consolidation phase. However, the wait was worth it once again, as in March 2018, the XRP price started an extraordinary 8,000% rally. If this scenario were to be replicated, it could imply a potential skyrocketing of XRP’s price to $50, beginning on the 1st of November 2024. Egrag offers an average price target at $30, stating, “XRP army stay steady, the average of these two targets lands at $30, you know that I always whisper to you my secret target of $27. Hallelujah, the anticipation is palpable!”
At the time of writing, XRP is trading at $0.60333. The price recently broke out of a downtrend channel but faced resistance at the 0.382 Fibonacci retracement level at $0.627, causing the bullish momentum to fizzle out. For the past four days, the XRP price has been squeezed into a tight range between the 20-day and 50-day Exponential Moving Average (EMA), signaling an imminent breakout to the downside or upside.
If an upside breakout occurs, the price level at $0.627 will be crucial. Breaking above it could allow the XRP price to tackle the 0.5 Fibonacci retracement level at $0.688. On the other hand, a downside breakout would require the first support level at the 100-day EMA of $0.575 to hold. If it fails, the price could potentially fall towards the 0.236 Fibonacci retracement level at $0.552, which is also close to the 200-day EMA. The convergence of these two indicators indicates a price level that the bulls must defend at all costs.
The XRP price has shown promising signs on the monthly chart with the possibility of a third consecutive green candle, a rare occurrence in the history of the cryptocurrency. Historical patterns indicate the potential for significant surges in price after consolidation periods. While no guarantees can be made, the analysis by Egrag suggests a potential surge to $10 or even $50, based on previous occurrences. However, it is important to consider the current price analysis and the possibility of a breakout in either direction. The XRP price remains in a critical position, with key levels to watch for a potential continuation of the bullish trend or a reversal towards lower levels.
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