After more than two years on the list of the worst crypto market participants, XRP may have started a long-term rebound. According to technical analysis patterns and statistics, a near-term goal for XRP may be closer to 40 cents per token. After that, a much larger increase is possible.
This is what Ripple’s long road to recovery could look like if the current uptrend, as confirmed by the ADX indicator, remains strong.
The XRP rally could hit as high as $ 0.40 based on the Bull Flag target
The cryptocurrency market is heating up again after almost three full years of downtrend. Even assets that fell out of place and compared to manure, like XRP, have made a triumphant comeback.
The asset, which was once a bang for almost any joke, is now nearly 200% above its black Thursday low of ten cents a coin. Since July 1st alone, Ripple has grown by over 75% and continues to rise, even as Bitcoin has struggled with resistance.
XRP is now trading over 30 cents per token. However, chart pattern data based on short-term targets points to 40 cents as the high before an extended correction takes place.
Ripple Bull Flag Short Term Target $ 0.40 | Source: TradingView
XRPUSD broke away from a massive bull flag above 100% and through downtrend resistance. Bull flag targets are measured by applying the height of the flagpole to the point of breakout.
The aim of such a structure is in line with the previous support that has now resisted. This is just the first stop for a potentially larger chart pattern.
Ripple Bull Flag breaks downtrend resistance | Source: TradingView
Record Ripple’s long road to recovery, uptrend confirmed by ADX indicator
While Ripple has done this in the past, asset prices typically don’t go up in a straight line. Any withdrawal after an increase of over 100% is not only likely but healthy too.
The resistance at 40 cents and above has not been tested in over a year. You are unlikely to make it on the first try, and it could be an opportunity for a much-needed retreat and consolidation before your next climb.
Ripple Inverse Head and Shoulders Possible Scenario | Source: TradingView
Another, longer bull flag formation would also form a right shoulder on a massive, perennial inverse head and shoulders pattern. A consolidation below the resistance level and the confirmation of the chart pattern could result in an explosive move that Ripple has had in the past.
Related reading | Silver Fractal: Are Crypto Altcoins On The Edge Of An Explosive Wave?
Mid-term goals would hit up to $ 1.50 per XRP. Recently, two analysts called for the asset to hit up to $ 26, or $ 30 per token, over the long term. However, it depends on the cryptocurrency’s upward trend remaining strong.
Ripple Average Directional Index and DMI 3D | Source: TradingView
According to the Average Directional Index, the upward trend in XRPUSD is only just beginning. The tool is mainly used to measure the strength of a trend. The indicator also includes two directional movement indicators which, when exceeded, determine whether an asset is in an upward or downward trend.
The positive DMI or the green line is well above the red, bearish, negative DMI. The ADX has just passed a level of 20, which suggests that this uptrend has a lot more to offer.
The higher the reading, the stronger the trend. DMI + is now the second strongest reading since the top of 2018. With the ADX picking up and DMI showing a strong bull trend, Ripple’s rebound is here.
Disclaimer: Technical analysis is based on probabilities and should not be viewed as investment advice.
Comments are closed.