The XRP price has recently entered a consolidation phase after a significant surge in October and early November. However, a closer look at the monthly price chart reveals an intriguing pattern. Crypto analyst Egrag has highlighted the occurrence of three consecutive monthly green candles, a rare phenomenon in the history of XRP. As the market approaches the monthly close, if XRP closes above $0.5987, it could confirm the formation of a third consecutive green candle.
Egrag has delved into the historical precedents of such formations and found two distinct scenarios. In the first scenario from March to May 2017, XRP recorded three consecutive green candles, followed by a 5-month consolidation phase. However, this consolidation phase had a remarkably bullish effect as the XRP price surged by a staggering 1,500% in just two months after it ended. If history were to repeat itself, investors could anticipate a potential surge to $10 by April 1, 2024.
In the second instance from December 2015 to February 2016, XRP experienced a 102% price increase over three consecutive green months. This was followed by a longer 12-month consolidation phase. However, the wait was well worth it as in March 2018, the XRP price initiated an extraordinary 8,000% rally. If this scenario were to be replicated, XRP’s price could skyrocket to $50, starting from November 1, 2024. Considering these historical patterns, Egrag suggests an average price target of $30, with a secret target of $27 in mind.
Currently, the XRP price has been consolidating within a tight range between the 20-day and 50-day Exponential Moving Averages (EMA) for four days. This indicates a potential breakout to the upside or downside in the near future. In the event of an upside breakout, XRP would need to surpass the $0.627 level, which is the 0.382 Fibonacci retracement level, and then target the 0.5 Fibonacci retracement level at $0.688. On the other hand, a downside breakout would find support at the 100-day EMA at $0.575. However, to prevent further decline, the bulls must defend this level against falling towards the 0.236 Fibonacci retracement level at $0.552, which coincides with the 200-day EMA.
At the time of writing, XRP is trading at $0.60333. Despite the recent consolidation, the XRP community remains optimistic about the potential for a bullish breakout. Egrag’s analysis, along with the unique historical precedents, has generated excitement and anticipation among XRP investors. The average price target of $30 provides a beacon of hope, with the secret target of $27 whispered as an additional reason for optimism. The XRP army eagerly awaits the outcome of the consolidation phase, hoping for a surge in price and a prosperous future for XRP.
The XRP price has entered a consolidation phase after a significant surge. The occurrence of three consecutive green candles in the monthly price chart has caught the attention of crypto analysts. Historical precedents suggest the potential for a substantial price increase if the patterns repeat themselves. However, the current tight range and impending breakout add an element of uncertainty to the situation. Nevertheless, the XRP community remains steadfast in their belief in the cryptocurrency’s potential. As the market unfolds, all eyes are on XRP, eagerly awaiting its next move.