A lone green candle on XRP’s three-week chart is catching the attention of at least one analyst who believes this is the start of something bigger then a routine jump.
Crypto analyst CW, posting on One that, if his cycle analysis is correct, with the setup first pointing to a retest of the all-time high zone and then, in an extreme scenario, to $21.5.
New uptrend starts on the three-week chart
Technical analysis of XRP’s price action on the 3-week candlestick time chart reveals an interesting signal. The signal itself is clear: a green candlestick has been printed on the three-week chart of XRP at a time when the price is just above $1.38.
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The analysis comes from crypto analyst CW, and according to this projection, this could be the first bullish wick showing sellers losing control on this higher time frame.
It is important to note that the rally has not started yet and XRP is still looking to break above $1.4. Moreover, the indicators have yet to give full uptrend signals, but according to the analyst, these bullish reversal signals will appear soon.
These sub-indicators visually correspond to a momentum oscillator that moves back and forth between oversold and overbought extremes, as shown in the chart below. They have printed blue dots on every significant XRP low since 2014, including the lows that preceded the 2017 and 2021 rallies. A new blue dot seems to be forming now.
Multi-phase cycle that sends XRP price to $21.5
The diagram accompanying the analysis outlines two cycle structures, divided into four separate phases. In the first cycle, Phase 1 was the initial markup, Phase 2 was a massive correction, Phase 3 was a long-term bearish consolidation within a symmetrical triangle, and Phase 4 was a breakout.
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The technical analysis shows that the current cycle follows almost exactly the same sequence. Phase 2 was printed as the bear market decline after 2021, Phase 3 as the multi-year compression between 2022 and 2024, and the rise to $3.65 as the first part of Phase 4 in the new cycle.
XRP is now, according to this reading, still playing through Phase 4 in a move that surpasses anything that came before, despite being down about 62% from its all-time high. Interestingly, the chart also labels the first upside target as a return to this all-time high.
Therefore, before there is any talk of double-digit prices, XRP should be reclaimed first the zone around the previous record of $3.65. CW’s latest projection Includes a bicycle top $21.5, which he pegs at the Fibonacci 6,618 extension level. That level is marked on the map as TP2, with the all-time high zone serving as TP1.
Featured image from Adobe Stock, chart from Tradingview.com