Jonathan Carter, a self-proclaimed market technician, has high hopes for XRP, predicting a rally to $1.68 in the medium term if the cryptocurrency can break out of a multi-year symmetrical triangle.
XRP has been stuck in a downtrend since its peak of $1.96 in April 2021, resulting in a series of lower highs and the formation of a symmetrical triangle with strong resistance at the upper descending trendline.
However, Carter believes that this downward trend will soon come to an end, anticipating an imminent breakout. By analyzing XRP’s price movements over a weekly timeframe, the analyst noted that the significant drop in the past month led to a retest of the lower trendline of the symmetrical triangle that has been forming for three years.
To provide context, XRP experienced a sharp decline alongside the broader crypto market from April 11 to 13, with three consecutive days of losses totaling a 24% drop. This bearish pressure pushed XRP down to $0.4188 on April 13, a level not seen since May 2023.
Despite this steep decline, the retest of the support at the lower trendline indicates a potential price upswing for XRP. Carter believes that this upcoming upswing could propel XRP to break through the upper trendline of the symmetrical triangle, leading to even greater gains.
In terms of price targets, the analyst initially expects a surge towards the $0.93 high, which was last reached in July when XRP was declared a non-security in the Ripple vs. SEC lawsuit. However, XRP faced significant resistance at this level and eventually retraced all its gains.
This time, Carter predicts that XRP will successfully overcome the major resistance at $0.93, setting a higher mid-term target of $1.68. With XRP currently trading at $0.5362, achieving this target would require a 213% rally, a feat that is feasible within the current market cycle.
Adding to the optimism surrounding XRP’s potential is its MVRV Ratio, which has recently dropped to -0.5733%. This low ratio indicates that the current market price of XRP is relatively low compared to the average price at which coins were last moved, suggesting that XRP may be undervalued.
The XRP Commodity Channel Index (CCI) on the 1-hour chart further supports this signal, with a current value of -99.58 indicating that XRP is undervalued on an hourly timeframe. This has led to bold price projections, including some as high as $20.
It is important to note that this article is for informational purposes only and should not be considered financial advice. The views expressed are solely the author’s and do not reflect those of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions, and The Crypto Basic is not liable for any financial losses incurred.