XRP price breaks 3.5-year downtrend as analyst predicts $200
2024.09.30 10:30
XRP price closed another week up 9.19%, overcoming previous overhead resistance at $0.60. It is currently up 14.69% for the month and on its way to closing its strongest quarterly return since Q1, 2023, which was 15 months ago.
Also read: XRP leads crypto weekend gains fueled by surging open interest
XRP price breaks 3.5-year downtrend
When XRP was declared “not a security” on July 13, 2023, it rallied as high as $0.95, but the monthly close was at $0.69. XRP has consolidated sideways for over a year ever since, but its current monthly returns have breached a major downtrend pattern that has been active for over 3.5 years.
As illustrated in the chart, XRP’s weekly price was trending under a long-term descending trendline, which acted as a resistance multiple times. Its recent price action has currently flipped the trendline, potentially indicating a shift in the overall trend.
XRP 2-weekly chart. Source: TradingView
The Charting guy, an independent technical analyst, highlights this particular pattern as well and mentions that it also broke a seven-year downtrend, which started at the beginning of 2018 when XRP reached its all-time high at $3.40.
Another independent trader, Javon Marks, explains how XRP might rally another 30,000% from its current price point to a whopping $200.
Marks argues that XRP has currently broken out of a ~7-year pennant pattern, which may undergo a “full logarithmic follow-through.” Such a bullish breakout would lead to a $200 target in the coming months.
Javon Mark’s XRP analysis. Source: X.com
The trader based his prediction on a similar pattern from 2017, leading to a 42,000% return to its all-time high value of $3.40.
However, this prediction should be taken with a grain of salt since a $200 XRP would lead to a market cap of $11+ trillion, which is currently 11x Bitcoin’s current market cap.
XRP price can reach $1 in Q4
XRP’s recent weekly close of $0.642 is its highest since December 2023. Yet, it is important to note that since last August, XRP has been consolidating between $0.66 and $0.42. The present market conditions provide the best opportunity for XRP to break $0.70, as risk-on assets are flipping bullish.
XRP weekly chart. Source: TradingView
It’s now crucial for XRP to flip $0.66 into support, which will test its overhead resistance at $0.75. This particular level has been tested thrice in the last two years, with the last retest occurring in February 2024.
A strong move above $0.75 should ensure a clear path to $1. Between $0.75 and $1.00, there is a lack of resistance, so if $0.75 resistance is flipped into support, the next immediate target would be $1.
Additionally, Dom, a market analyst, also indicates that XRP is “gearing up for a move” in the short term. Speaking on XRP’s current higher lows and low highs pattern, the analyst infers that $0.63 could be the price at which a support base will be formed over the next few days.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
