Renowned market analyst Javon Marks has identified a significant bullish signal for XRP, suggesting the potential for a massive surge that could increase its value by 360 times to $200.
Marks’ analysis comes at a time when XRP is struggling to maintain support above $0.51, a crucial level necessary to protect against a drop to the $0.50 zone. The analyst based his view on various technical indicators that indicate a hidden bull divergence, a pattern that could result in substantial gains for XRP investors.
A hidden bull divergence occurs when the price of an asset forms a higher low while a momentum indicator, like the Relative Strength Index (RSI), forms a lower low. This pattern indicates that despite a price retracement, the bullish momentum underlying the asset remains strong.
Both the RSI and the price of XRP confirm this hidden bull divergence, indicating underlying strength within the current uptrend. On the 18-day chart, XRP has consistently formed higher lows since 2020, while its RSI has continuously formed lower lows since 2016.
In addition to this bullish divergence setup, Marks notes that XRP is approaching the point of convergence of a Pennant or Coil Pattern, a technical formation that often precedes a breakout. A pennant pattern typically features converging trend lines and typically occurs before the continuation of the previous trend.
XRP began forming this large multi-year pennant structure when it dropped from its all-time high of $3.31 in January 2018. Given XRP’s recent price movements, this pattern is forming at a critical juncture, potentially leading to a significant bullish breakout.
Marks suggests that the significance of this hidden bull divergence is further magnified when considering XRP’s historical performance. He points out that XRP has previously experienced an astonishing rise of over 110,000%, demonstrating its potential for explosive growth.
The analyst projects that if XRP breaks out as expected, the subsequent price surge could be extraordinary. He suggests that with a logarithmic breakout and sustained follow-through, XRP could see gains exceeding 36,000%, pushing its price to around $200. Marks remains steadfast in his projection of this price target.
Analysts use logarithmic charts to illustrate exponential growth and provide a clearer picture of price movements over extended periods. A breakout on such a chart indicates a significant shift in market sentiment and the potential for impressive gains.
Marks also highlights XRP’s past potential for rapid appreciation, with previous gains reaching as high as 1110 times its initial value. This historical precedent lends credibility to his current projection, making the forecasted 360X surge reasonable.
However, some investors express doubts about the potential impact on XRP’s market capitalization. A price of $200 would result in a market valuation of $11 trillion for XRP, surpassing the combined market cap of tech giants Microsoft, Apple, and Nvidia.
Currently, XRP is trading at $0.5186, with a marginal 0.30% increase today. Its RSI (46.6) and commodity channel index (-36) suggest that it is not yet oversold. This indicates that XRP still has room for growth in this bull run, although the extent of this growth remains uncertain.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
