After an extended period of trading in consolidation, analysts suggest that XRP appears to be poised for a breakout in the coming months if historical patterns replicate.
In particular, crypto analyst Dark Defender, through an X post on April 27, drew parallels between current market conditions and the period from 2013 to 2017. The analyst stated that XRP investors should anticipate “exciting changes” to unfold over the next three months,
The focus of the analysis is on XRP’s price movements, mainly its lows aligning with a key support line reminiscent of patterns observed during the 2013-2017 period, which preceded a significant uptrend in XRP’s value.
XRP’s 100% rally potential
Therefore, this pattern places the next price target at $1, which will reflect a breakout above the Ichimoku Clouds. Notably, the Ichimoku Cloud is a technical indicator used to assess potential future price movements and to identify key levels of support and resistance.
“Brace yourselves for the exciting changes that the next three months will bring, as they will be unlike anything we’ve seen before. XRP price lows on the main support line imitate the previous pattern. We will see a breakout above the Ichimoku Clouds towards $1, first,” the analyst said.
While acknowledging the skepticism that has surrounded XRP in recent years, Dark Defender contended that a new chapter is about to begin for the digital asset. Based on price projections, if historical trading patterns repeat themselves, XRP could rally almost 100% from its current valuation.
XRP’s path to $1
Despite ongoing consolidation below the $1 mark, investors remain concerned, especially about XRP’s blockchain activity. For example, according to a Finbold report, Ripple sold 100 million XRP tokens from this month’s sell-off reserves on April 24 for $52 million.
The sell-off marked the end of April’s token unlock and paved the way for May’s 1 billion XRP release. Notably, such token unlocks have gained a reputation for causing short-term volatility around XRP and might act as a barrier towards hitting $1.
Additionally, as investors eye the possibility of XRP reclaiming the $1 mark, the outcome of the Ripple – Securities Exchange Commission (SEC) case remains a critical factor. At the moment, the case’s focal point revolves around the potential fines sought by the SEC, with Ripple contesting a proposed $2 billion fine and advocating for a substantially lower amount of around $10 million.
Meanwhile, by press time, XRP was trading at $0.5154, reflecting a correction of approximately 1.3% in the last 24 hours. Therefore, XRP is trading at a crucial level that can influence movement in either direction.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
