A close analysis of the XRP/USD trading pair by renowned crypto analyst Jaydee has shed light on some compelling technical patterns and indicators. With the crypto community eagerly awaiting XRP’s next big step, Jaydee offers insights pointing to two critical price thresholds before a possible rally towards $5.
What’s Next for the XRP Price?
The analyst shared the following 1-week chart of XRP today, explaining: “XRP – PATIENCE and ignoring the news is key! Let’s take a step back and take a more macro view! While the short term may look scary (even with all this irrelevant news), the weekly chart is still creating ‘hidden bullish divergence’ on the RSI/SRSI.”
Central to Jaydee’s analysis of the logarithmic scale chart of XRP/USD is the identification of a symmetrical triangle pattern. This pattern on a chart indicates a phase of consolidation, after which the price will break out or collapse. A break of the lower trendline indicates the start of a new bearish trend, while a rise past the upper trendline suggests the start of a new bullish trend.
Jaydee highlights the importance of the $0.4797 support level within this pattern for the XRP price. The chart suggests robust support at this price level, which aligns with the 61.8% Fibonacci retracement level.
The analyst also draws attention to the Fibonacci retracement level of 78.6%, which he sees as the bottom of the dip area. The chart implies that XRP could fall significantly further towards this sub-$0.35 area. In the event of such a short-term pullback, this lower Fibonacci level could very well mark out a critical support area.
As Jaydee noted in the tweet, the Relative Strength Index (RSI) and the Stoch RSI have both formed hidden bullish divergences. The RSI of XRP/USD on the 1-week chart is currently around 45.53 and is in neutral territory, indicating no immediate overbought or oversold conditions. Still, the divergence in the RSI offers a fascinating story.
Jaydee highlights the hidden bullish divergence, where price is charting higher lows while the RSI is trending lower lows, which is usually an indication of waning bearish momentum. This is usually seen as a bullish sign as it suggests that downward momentum is weakening and could be a harbinger of a bullish phase. The Stochastics RSI stands at 7.66 and shows the same pattern. Overall, Jaydee’s forecast for XRP is bullish in the medium to long term.
In conclusion, the convergence of these technical indicators and the unwavering support at $0.4797 show strong bullish undercurrents for the XRP price. Still, it is conceivable that XRP could face another short-lived decline before heading into a significant bullish rise. Assuming these patterns hold, a jump to a $5 price (green arrow) seems plausible according to Jaydee.
Feedback from the XRP community
Jaydee dug into the commentary and added nuances: “Frightening on the daily chart (glad we knew a 12% correction was coming). The weekly chart is very different from the daily chart.”
When asked by a user named Steven on the possible implications of Bitcoin ETF approvals and its increased adoption and usability, Jaydee replied: “Charts will still come into play. May even have a ‘fuse’ at higher levels on higher time frames. But the body candle close to the macro view is the real value, rather than any wicks. Wings would just be ‘noise’ caused by news. Hasn’t all this bullish news already produced a lot of REKT?”
About the timing of the $5 forecast, Jaydee was candid noticed“No one can predict the time frame or know when we would get the next push upwards. I just placed an arrow anywhere. Wait a minute… Do you really think we’re God?’
In response to a user’s question that XRP might drop to $0.35, which would create a lower low, Jaydee clarified: “That would be the case if a body candle closes there. But potential fuses could go there.”
At the time of writing, XRP was trading at $0.4821.
Featured image from Shutterstock, chart from TradingView.com
