Jonathan Carter, a self-proclaimed market technician, is optimistic about the future of XRP, predicting a rally to $1.68 in the mid-term if the cryptocurrency can break out of a symmetrical triangle pattern that has formed over the past few years.
XRP has been in a downtrend since reaching a peak of $1.96 in April 2021. This downward trend has resulted in lower highs and the formation of a symmetrical triangle with strong resistance at the upper descending trendline.
However, Carter believes that this downward trend will soon come to an end. Analyzing XRP’s price movements over a weekly timeframe, he notes that the significant drop in price last month led to a retest of the lower trendline of the symmetrical triangle.
During the market-wide decline from April 11 to 13, XRP experienced three consecutive days of losses, resulting in a 24% drop. The price of XRP fell to $0.4188 on April 13, the lowest level since May 2023.
Despite this sharp decline, Carter sees it as a positive sign, indicating a potential price rebound. He believes that this upcoming rebound could lead to a breakout above the upper trendline of the symmetrical triangle, resulting in significant gains for XRP.
In terms of price targets, Carter first expects XRP to reach the high of $0.93, which was last seen in July when it was declared a non-security in the Ripple vs. SEC lawsuit. However, at that time, XRP faced strong resistance at $0.93 and eventually retraced all its gains.
This time, Carter predicts that XRP will successfully break through the resistance at $0.93 and set a higher mid-term target of $1.68. Currently trading at $0.5362, XRP would need to rally by 213% to reach this target, which is achievable within the current market cycle.
Another factor that supports the optimism in XRP’s potential is its MVRV Ratio, which has recently dropped to -0.5733%. This low ratio suggests that XRP is currently undervalued compared to its average price when coins were last moved.
The XRP Commodity Channel Index (CCI) on the 1-hour chart also indicates that XRP is undervalued in terms of the hourly timeframe, adding further credibility to the bullish signal. Some price projections even go as high as $20.
It is important to note that this article is for informational purposes only and should not be considered financial advice. The opinions expressed are those of the author and do not reflect the views of The Crypto Basic. Readers are encouraged to conduct their own research before making any investment decisions. The Crypto Basic is not responsible for any financial losses incurred.
