One well-known crypto analyst, Ali Martinez (@ali_charts), recently shared a technical analysis on X that points to a potentially significant bullish signal for XRP. Martinez pointed out that the SuperTrend indicator, when applied to the 12-hour chart of XRP/USDT, has switched to a bullish stance—a pattern that led to a remarkable 470% price surge in the past.
According to Martinez, “The last time the SuperTrend indicator turned bullish on the 12-hour chart, XRP saw a 470% increase… It has now turned bullish again,” as seen in the chart below.
Implications for XRP Price
The SuperTrend indicator, created by Olivier Seban, is a favored trend-following tool in technical analysis. It tracks market trends by dynamically adjusting based on volatility, using the Average True Range (ATR) to provide buy and sell signals.
With calculations involving ATR and a multiplier (often set at 3), the SuperTrend appears above or below the price, changing its position as prices cross these levels. A bullish transition occurs when the indicator moves below the price, hinting at a possible uptrend, while a bearish transition occurs when it moves above the price, suggesting a potential downtrend.
Recalling the last instance of a bullish flip in the SuperTrend indicator on XRP’s 12-hour chart, which resulted in a remarkable 470% price surge. This previous bullish flip occurred in November last year when XRP traded around $0.50. Following the flip, XRP experienced a strong uptrend, breaking through significant resistance levels and peaking at $2.90 on December 3, representing a 470% gain from its pre-flip value.
As noted by Martinez, the SuperTrend indicator on the 12-hour chart has once again turned bullish. This resurgence indicates a potential repeat of the previous significant upward movement, aligning with a bullish chart setup on the weekly chart.
In the past week, XRP rebounded from crucial support at $1.96 and is now aiming for a weekly close above the 1.272 Fibonacci extension level at $2.42. If there is a decisive breakthrough above this resistance level, backed by sustained trading volume, the price could target the 1.618 Fibonacci extension level at $3.00.
Based on historical trends, if XRP follows the previous pattern, the price target could be much higher. A 470% increase would suggest a price level around $13.80.
Currently, XRP is trading at $2.44.
The post History Repeats, SuperTrend Indicator Suggests XRP Could Surge 470% appeared first on Crypto Breaking News.
