XRP, the native token of Ripple, has notably underperformed in recent years compared to other major cryptocurrencies like Bitcoin. However, there are now signs that XRP may be gearing up for its next major bull run.
According to crypto trader Crypto Patel, XRP “seriously underperformed” in the last bull market while it was embroiled in a long legal battle with the SEC. As Bitcoin went on to hit new all-time highs in 2021, XRP failed to pass its 2017 peak of $3.30.
However, Crypto Patel believes the “floodgates may finally be open” for XRP. He points to the formation of a large symmetrical triangle breakdown pattern on the XRP chart that resembles the pattern seen in early 2017, right before XRP increased by a staggering 40,000%. If XRP were to repeat that percentage gain from its current levels, it could potentially reach mind-blowing prices of $10 or more.
After surviving nearly 2,300 brutal bear days over the last 6+ years, Crypto Patel thinks this coiling pattern signals that Ripple is finally ready to erupt. His accumulation zone for XRP is between $0.40 to $0.50, with upside targets of $0.90, $1.95, $4, $7, and above $10. He believes that for those who put faith in technical analysis patterns and cycles, XRP may be ready to launch into another parabolic advance.
According to technical analysis by altFINS, XRP continues trading in a clear downtrend across short, medium, and long-term timeframes. The altFINS pattern recognition technology has identified an emerging “channel down” on the XRP chart, signaling continued bearish momentum.
XRP recently broke below its 200-day moving average, confirming the overarching negative trend structure. altFINS notes that traders should watch for a breakout above the upper channel trendline and a move back above the 200-day MA to indicate a potential bullish reversal. Until then, technical caution remains warranted.
Drilling down, XRP finds itself caught in the boundaries of a descending price channel, fluctuating between resistance around $0.55 and support at $0.45. With emerging chart patterns like this, altFINS strategists suggest initiating trades when the price approaches the upper or lower channel trendlines.
Source: altFINS – Start using it today
A breakout above $0.55 resistance could accelerate XRP higher, while a breakdown below $0.45 support risks intensifying sell momentum. The $0.68 level marks another notable resistance zone where selling pressure may emerge.
Examining momentum, the technical picture is mixed for XRP currently. While the bullish MACD crossover points to some positive divergence, RSI below 45 reflects a persisting downward trajectory in the token price.
In summary, altFINS technical analysis remains neutral-to-bearish on XRP as long as the Channel Down pattern and 200-day MA breakdown remain intact. This signals that traders should await a technical trend reversal before adopting bullish positioning.
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