XRP is currently trading slightly above the $0.50 price level after experiencing a $0.50 price drop significant price drop wiping out most of the previous month’s gains. XRP managed to break the $0.60 price level during a rally last month, although this rise was short-lived and lasted only a few days.
Despite this setback, crypto analyst Javon Marks notes that bullish divergence patterns are still present in the market, indicating that a new breakout could be on the horizon. These patterns indicate potential upside momentumindicating a possible recovery and a very optimistic price rise to new record highs.
There are still bullish differences
Crypto analyst Javon Marks recently shared an intriguing XRP technical analysis on social media platform X with very bullish price prediction targets for the cryptocurrency. According to Marks, the crypto asset recently started a bullish rally, which eventually turned into a bullish rally an attempted breakout before reversing. The rally he was talking about was XRP’s price journey from $0.4321 in July, which peaked at $0.6534 on July 31, according to data from Coinmarketcap. As such, XRP eventually broke out of a multi-year descending triangle pattern.
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This interesting pattern is shown on Javon Marks’ monthly XRPUSD candlestick chart. The descending triangle pattern, which has developed since XRP’s record high of $3.4 in 2018, is characterized by a series of lower highs and higher lows. Over the past six years, this pattern has narrowed, reflecting a period of consolidation and reduced volatility. This formation has tightened in recent months, culminating in the small breakout in July and a move toward a more bullish outlook for XRP.
Although XRP price is now trading within this descending triangular pattern area again, Javon Marks remains optimistic. Additionally, he pointed out an interesting correlation between the price action and the Relative Strength Index (RSI), a popular momentum indicator. According to Marks, this correlation suggests that a successful bullish breakout is in the offing.
$XRP has recently temporarily broken out, which appears to have been just a breakout attempt, but between Price Action and the RSI there are still patterns present in the form of bull divergies that could indicate that a successful bullish breakout is in the offing !
On a conservative note,… https://t.co/BCrp9CwT6i pic.twitter.com/XGGiv0nBDp
— JAVON⚡️MARKS (@JavonTM1) August 6, 2024
Price targets for XRP
According to Marks, a successful breakout would translate into a price range between $15 and $18 on the conservative side. A more intense rally could lead to XRP rising above the $100 price level. His final target on the price chart is $260 for XRP, which represents an increase of 41,780% from the current price level.
Rallies of such magnitude are not new to the crypto industry. As Marks noted, we have witnessed such follow-ups on a logarithmic scale in the past. The last time the altcoin broke out of a similar multi-year descending triangle pattern was in 2017, resulting in a 42,000% price increase that culminated in the current all-time high.
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Realistically, however, the crypto market has evolved since then. XRP is now one of the largest cryptocurrencies in terms of market capitalization, and repeating such a 40,000% increase is easier said than done. A lone XRP rally of that magnitude would push XRP to overtake even Bitcoin in terms of market capitalization, which many market participants would consider impossible. Nevertheless, there is a sustained XRP rally in the near future not excluded.
At the time of writing, XRP is trading at $0.5162 and is up 3% in the last 24 hours.
Featured image from Adobe Stock, chart from Tradingview.com