Renowned market analyst Javon Marks has identified a significant bullish indicator for XRP, suggesting the potential for a massive surge in value. According to Marks, XRP could see its value multiply by 360 times to reach $200.
Marks’ analysis comes at a time when XRP is struggling to maintain support above $0.51, a crucial level to avoid a collapse to the $0.50 zone. The analyst’s viewpoint is based on various technical indicators that indicate a hidden bull divergence, a pattern that could result in substantial gains for XRP investors.
A hidden bull divergence occurs when the price of an asset makes a higher low while a momentum indicator, such as the Relative Strength Index (RSI), makes a lower low. This pattern indicates that despite a price retracement, the underlying bullish momentum remains strong.
In the case of XRP, both the RSI and price have confirmed this hidden bull divergence, signaling strength within the existing uptrend. On the 18-day chart, XRP has consistently recorded higher lows since 2020, while its RSI has continuously shown lower lows since 2016.
In addition to this bullish divergence setup, Marks points out that XRP is approaching the convergence point of a Pennant or Coil Pattern, a technical formation that often precedes a breakout. A pennant pattern typically features converging trend lines and usually occurs before a continuation of the prior trend.
XRP began forming this large multi-year pennant structure when it dropped from its all-time high of $3.31 in January 2018. Given its recent price movements, this pattern is forming at a critical juncture and could potentially lead to a significant bullish breakout.
Marks emphasizes the significance of this hidden bull divergence by considering XRP’s historical performance. He notes that XRP has previously experienced an astronomical rise of over 110,000%, demonstrating its potential for explosive growth.
The analyst projects that if XRP breaks out as anticipated, the subsequent price surge could be extraordinary. With a logarithmic breakout and sustained follow-through, Marks suggests that XRP could see gains exceeding 36,000%, pushing its price into the $200 range.
To showcase exponential growth and provide a clearer picture of price movements over large time scales, analysts often use logarithmic charts. A breakout on such a chart indicates a significant shift in market sentiment and the potential for impressive gains.
Additionally, Marks highlights that XRP has previously demonstrated rapid appreciation, with past gains reaching as high as 1110 times its initial value. This historical precedent adds credibility to his current projection of a 360X surge.
However, some investors have expressed doubt due to the potential impact on XRP’s market capitalization. A price of $200 would result in a market valuation of $11 trillion for XRP, surpassing the combined market cap of tech giants Microsoft (MSFT), Apple (AAPL), and Nvidia (NVDA).
Currently trading at $0.5186, XRP has shown a minor increase of 0.30% today. Its RSI (46.6) and commodity channel index (-36) suggest that it is not yet oversold, indicating that there is still room for growth in this bull run, although the extent of this growth remains uncertain.
Please note that this article is for informational purposes only and should not be considered financial advice. The views expressed in this article are solely the author’s opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses incurred.
