Este artículo también está disponible en español.
XRP’s recent price movements have followed a pattern that crypto analyst Javon Marks believes signals the potential for a strong continuation rally. Sharing his analysis on the social media platform X, Marks pointed to a “hidden bullish divergence” on XRP’s daily candlestick chart. Despite the ongoing price crash, the presence of this bullish divergence opens up new bullish targets for the XRP price.
XRP’s Price Crash Worsens, But Hidden Bullish Divergence Suggests Next Move
XRP’s price action has faced consistent downward pressure over the past week, with the decline intensifying in the past 24 hours. At the time of writing, XRP has dropped by approximately 13% in the past 24 hours and is on the verge of retesting a crucial support level at $2.
Related Reading
However, an interesting analysis shows that this decline is part of a hidden bull divergence pattern, where both the price and the RSI indicators are creating a series of highs and lows on the 1-day candlestick timeframe. This interesting pattern is characterized by higher lows and higher highs on the XRP price chart, while there’s a series of lower lows and lower highs on the RSI indicator. This divergent formation between the cryptocurrency’s price and the RSI is known to be bullish. Particularly, it suggests the selling pressure shown by the RSI could be slowing down.
Javon Marks emphasized that XRP is preparing for a “massive continuation wave up” and that the necessary technical confirmations for such a move are already in place. This assertion builds upon his earlier February 18 analysis, where he described the hidden bullish divergence as forming in a “textbook fashion.
Crash To Reverse Soon? Price Targets To Watch
According to Javon Mark’s projection, an upside move would see the XRP price eventually creating a higher high, as expected from the bullish divergence pattern. In terms of a specific price target, Mark’s projection shows that the next peak could reach at least $3.80. If realized, this would push XRP beyond its current all-time high of $3.40.
Related Reading
However, this outlook hinges on the XRP price holding above the bullish divergence support at $2. Any sustained breakdown below this threshold could challenge the strength of the projected rally and alter the bullish outlook.
Adding to this perspective, Marks also noted the similarity between XRP’s consolidation in the past few weeks since it reached $3.36 and that of a consolidation after a strong rally in the first half of 2017 after a strong rally.
Although the current consolidation phase has lasted longer than the one observed back then, both formations share key structural similarities. The 2017 consolidation ultimately led to a continuation rally that pushed the XRP price to new highs. If history repeats itself, the present consolidation could also be a precursor to another significant leg up.
At the time of writing, XRP is trading at $2.15, down by 13.2% and 15.9% in the past 24 hours and seven days, respectively, and is now in danger of losing the $2.0 support soon.
Featured image from Adobe Stock, chart from Tradingview.com
Credit: Source link