Date: Tue, Dec 31, 2024, 04:21 AM GMT
The cryptocurrency market has experienced a notable correction throughout December. Bitcoin (BTC), which recently hit an all-time high of $108,000, has retreated to $92,000. This bearish sentiment has affected top altcoins as well, with XRP seeing a pullback after a strong rally in November. Its monthly gains have now shrunk to 7%, reflecting the broader market's consolidation.
Source: Coinmarketcap
Analyst Highlight 2017 Rally Setup
Prominent crypto analyst @JavonTM1 pointed out an intriguing similarity between XRP’s current setup and its legendary 2017 rally. According to his analysis, XRP's current 3-day chart mirrors the price action observed during its massive 2017 breakout. Back then, XRP entered a "symmetrical triangle" pattern, saw a false breakdown, and then exploded upwards, marking one of the most dramatic rallies in crypto history.
Chart Analysis: 2017 Setup
In the 2017 cycle, XRP initially broke out of a symmetrical triangle pattern and entered what Javon described as an "Intermission Phase."
Source: @JavonTM1 (X)
This consolidation period served as a launchpad for the next leg of the rally, which saw XRP's stellar surge.
Chart Analysis: 2024 Setup
Fast forward to today, and XRP’s price action is eerily similar. In the 2024 chart, XRP has recently broken out of another symmetrical triangle pattern following a brief false breakdown.
Source: @JavonTM1 (X)
Currently, the price is consolidating around the $2.00-$2.80 range, resembling the "Intermission Phase" from 2017. Analysts believe this setup could lead to another explosive rally if history repeats itself.
What’s Next for XRP?
As shown in the latest chart, $XRP is consolidating within a symmetrical triangle on the 4-hour timeframe.
XRP 4H Chart/ Coinsprobe
The price has found strong support at the lower trendline of $2.00 and is trading slightly above it at $2.02. Earlier, this support zone has been a critical level for rebounds, and technical indicators suggest a potential rally may be imminent.
1.Key Levels to Watch
Support: $2.00
Resistance: $2.48 (upper trendline of the triangle)
Downside Target: If the $2.00 support fails, XRP may retest the lower support level at $1.63.
2.Indicators to Monitor
Relative Strength Index (RSI): Currently near oversold levels, signaling a potential reversal.
MACD: Momentum indicators are starting to show bullish divergence, hinting at a possible breakout.
3.Potential Upside: If XRP breaks above $2.48, it could trigger a strong upward move, paving the way for a significant rally. Analysts are optimistic that the next leg could test much higher resistance levels, reminiscent of the 2017 parabolic run.
Conclusion
XRP's current price action is generating excitement in the crypto community, especially among those who remember its historic 2017 rally. While the symmetrical triangle pattern and technical indicators are encouraging, the broader market sentiment remains a key factor. Traders and investors should keep a close eye on XRP’s movement in the coming weeks, as a decisive breakout could lead to substantial gains.
As always, it’s important to exercise caution. The crypto market is highly volatile, and there are no guarantees. Conduct thorough research and consult with financial advisors before making any investment decisions.
Get more updates on: coinsprobe.com
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
