Crypto analyst Jaydee recently took to X (formerly Twitter) and shared another intriguing chart of XRP. The analyst presented the 2-month XRP dominance chart from 2014 to today, which sheds light on the cryptocurrency’s historical and potential future price action. This research brings the focus to a descending trendline and a horizontal resistance line, showing a critical XRP dominance level of 2.62%, which could be crucial for the price’s next parabolic move.
XRP dominance is just below the key level
The chart delves into its historical performance and shows moments when the token experienced rapid rises and furious falls in terms of crypto market dominance. There was a period when XRP experienced a staggering 39x price increase, reaching $0.39 in just 56 days in 2017. Shortly after, the digital asset surged 17x within 28 days, taking its value to $3.31.
Both times dominance was rejected on the yellow 5.5 year trend line. This resistance line has consistently served as a major barrier to XRP’s dominance in the crypto market. Any approach or touch to this line led to significant price action to the downside.
Remarkably, the cryptocurrency’s price experienced a similar situation from 2015 to 2017, when its dominance was also held below a declining trendline for more than two years. However, the breakout of this trend meant a massive price increase, as XRP’s dominance rose from just 1% to over 30% in just four months in 2017.
Fast forward to today, the cryptocurrency could be in a similar situation as it was in 2017. It has broken the trend and is moving past the red trendline. However, instead of an immediate increase like in 2017, XRP’s dominance is now struggling with the crucial limit of 2.62%.
According to the analyst’s chart, it is currently at 2.55%, narrowly missing the critical level. Notably, dominance has not reached a close above 2.62% on the two-month chart over the past fourteen months. However, if it crosses this threshold, it could signal the start of the next parabolic ascent, as outlined by Jaydee.
Currently reaching the yellow resistance line. If we can get a full two-month candle above the yellow resistance line, expect the next parabolic move! Is 2024 the year?
Weekly chart: when ‘moon’?
Jaydee shared another graphic on X (formerly Twitter) today, regarding the weekly on the 2-year trend line.” From this he distinguishes three important things before XRP can ’emerge’.
First, the cryptocurrency needs to gain momentum. He suggests that the price should rise above $0.54, at least on the daily chart. Second, the Stochastic RSI (SRSI) for the weekly time frame should cross the 20 level, indicating potential for a bullish move. Finally, the key point in Jaydee’s analysis is the yellow six-year trend line. If XRP wants to witness a parabolic move, breaking this trendline is imperative.
At the time of writing, XRP was trading at 0.5198.
Featured image from iStock, chart from TradingView.com