A market analyst, CryptoBull, shares an analysis of XRP, forecasting a potentially significant breakout from its persistent symmetrical triangle formation.
Notably, XRP has historically followed similar patterns across past cycles, and CryptoBull anticipates a massive price rally. Based on chart patterns dating back to 2013, the analyst projects XRP’s value could skyrocket by a nassive 42,140%.
XRP’s Initial Symmetrical Triangle
An accompanying 1-month XRP chart shows two symmetrical triangles formed over the years. The first began in 2013, when XRP hit the then all-time high (ATH) of $0.0614 in December of that year. Following this peak, XRP experienced a severe price correction, falling as low as $0.00281 by July 2014.
XRP Monthly Symmetrical Triangles | CryptoBull
This correction initiated a symmetrical triangle that lasted for about 38 months. From late 2013 to early 2017, XRP’s price consolidated as it established higher lows and lower highs. This signaled that a breakout was on the horizon.
Interestingly, in March 2017, XRP finally broke out of the triangle. The breakout led to a parabolic price surge that culminated in XRP’s January 2018 ATH of $3.31. Notably, this price represented an astonishing 110,233% increase from its floor price in January 2017.
XRP Forms a Second Triangle
Following the peak in January 2018, XRP again experienced a steep decline. This ensuing retracement marked the beginning of the second symmetrical triangle.
Unlike the first triangle, this current formation has persisted for over 80 months and is still active. XRP’s price movements have continued to follow the pattern of higher lows and lower highs. Notably, it has failed to breach the upper trendline of the triangle.
Despite the extended consolidation, CryptoBull believes a breakout is imminent. The current setup closely mirrors the conditions leading up to the 2017 breakout. This has led the market analyst to anticipate another dramatic price surge, with a primary target of $227.
XRP to $227: Feasible or Overly Ambitious?
Interestingly, multiple market analysts have predicted an imminent breakout from this symmetrical triangle. However, their targets for when the breach occurs have varied. CryptoBull’s $227 goal is one of the most ambitious.
Despite this projected target seeming far-fetched at first glance, historical data confirms XRP’s potential. In 2017, XRP’s price skyrocketed from $0.003 to $3.31, achieving a much greater 110,233% gain.
However, CryptoBull’s forecast of a 42,140% surge, while lower in percentage terms than the previous rally, is a more challenging task due to XRP’s current market structure.
This is because a move to $227 would require a massive influx of capital into XRP. With a circulating supply of 56.3 billion tokens, XRP’s market capitalization would reach an astronomical $12.78 trillion if it hit the projected target. To put this into context, the entire crypto market valuation currently stands at $2.02 trillion.
The significant hurdle for XRP in achieving this $227 target is liquidity and market cap limitations. At press time, XRP trades for $0.5374, down by more than 3% over the past seven days.