The XRP price has recently entered into a consolidation phase after experiencing a significant surge in mid-October to early November. However, a closer look at the 1-month chart reveals an interesting anomaly. Crypto analyst Egrag has identified a rare pattern in the XRP monthly price chart – a series of three consecutive green candles. This phenomenon has only occurred twice in the history of the cryptocurrency. As the market approaches the monthly close, a confirmation by a close above $0.5987 could mean the formation of the third consecutive green candle for XRP.
Egrag delves into the specifics of two historical precedents that followed the formation of three consecutive green candles. In the first scenario, XRP experienced a 5-month consolidation phase after recording the three consecutive green candles from March to May 2017. However, this consolidation phase had an extremely bullish effect. After it ended, the XRP price skyrocketed by an astonishing 1,500% within just two months. Egrag suggests that if history were to repeat itself, investors could anticipate a potential surge to $10, starting from the 1st of April 2024.
The second historical instance occurred from December 2015 to February 2016. During this period, the XRP price rose by approximately 102% in three consecutive green months. Following this, the cryptocurrency entered into a longer 12-month consolidation phase. However, the wait was once again rewarded when in March 2018, the XRP price started an extraordinary rally of 8,000%. If this scenario were to repeat, it would imply a potential skyrocketing of XRP’s price to $50, beginning on the 1st of November 2024. Egrag notes that the average price target stands at $30, with a whispered secret target of $27.
At the time of writing, XRP is trading at $0.60333. While the price managed to break out of a downtrend channel a week ago, the bullish momentum quickly subsided after being rejected at the 0.382 Fibonacci retracement level at $0.627. For the past four days, the XRP price has been tightly range-bound between the 20-day and 50-day Exponential Moving Averages (EMA), signaling an imminent breakout.
In the event of an upside breakout, where the price surpasses the decisive level of $0.627, XRP could potentially target the 0.5 Fibonacci retracement level at $0.688. On the other hand, if a downside breakout occurs, the first level of support would be the 100-day EMA at $0.575. It is crucial for the bulls to defend this level to prevent further decline towards the 0.236 Fibonacci retracement level at $0.552, which aligns closely with the 200-day EMA. The convergence of these indicators highlights a critical price level that must be protected.
While the XRP price is currently consolidating, the formation of three consecutive green candles in the monthly chart suggests the potential for a significant surge in the future. Historical precedents indicate that XRP has previously experienced consolidation phases followed by remarkable price rallies. Investors should carefully monitor the price action and key price levels to determine the possible direction of the breakout and position themselves accordingly. Whether XRP will follow the patterns of the past or pave its own path remains to be seen.
