XRP shows potential for major rally as historical pattern repeats
Ripple (CRYPTO:XRP) has seen limited growth over the past year, with its price increasing by just 17%, hindered by ongoing legal battles and market volatility.
However, historical trends suggest that the altcoin could be on the cusp of a significant breakout.
Looking back at the XRP/USD pair's performance in 2021, the cryptocurrency traded in a crucial demand area between $0.60 and $0.61 before surging to $1.55 by late April, achieving a gain of over 100% in under two months.
A similar rally occurred in July 2021 when XRP jumped from $0.60 to $1.28.
The current market setup indicates that XRP might be repeating this pattern, with a potential for another substantial increase if broader market conditions turn bullish.
Supporting this outlook is the Relative Strength Index (RSI), a key technical indicator that has historically signaled strong bullish trends during previous rallies.
The RSI is currently rising, suggesting that XRP could validate this positive trend if the upswing continues.
Further bolstering the possibility of a breakout is the performance of the XRP/BTC pair.
Since July 2023, XRP has been outperforming Bitcoin (CRYPTO:BTC), a reversal from earlier trends when Bitcoin dominated.
This shift has caught the attention of analysts like Crypto Michael, who noted that XRP is close to breaking above a seven-year bullish pennant, which could lead to a significant price increase.
On a technical level, XRP is trading above both the 20-day and 50-day Exponential Moving Averages (EMAs), which are indicators of a bullish trend.
The formation of a golden cross, where a shorter EMA crosses above a longer one, further supports the potential for upward momentum.
However, it’s important to note that Ripple’s ongoing legal battle with the SEC could still impact XRP’s price.
If the regulator appeals and wins, it could disrupt the bullish trend, potentially lowering XRP’s value to around $0.48.
Despite this risk, if the current pattern holds, XRP could target $0.65 in the near term, with the potential to rise even higher.
At press time, the XRP price was $0.5967.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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