Analyst Projects XRP Rally With Possible 63,400% Surge Amid Bullish MACD Monthly Cross

Analyst Projects XRP Rally With Possible 63,400% Surge Amid Bullish MACD Monthly Cross

Time Stamp: August 2, 2023 5:46 AM
Source Node: 2798931

The crypto analyst highlights bullish XRP patterns regarding MACD and ADX/DI crosses on the monthly timeframe, with a possible 63,400 percent projected rally.

Renowned chartist and analyst Jaydee has revealed insightful data regarding XRP’s price movements, indicating a potentially bullish scenario for the asset. Jaydee examined historical charts and observed key indicators like MACD and ADX/DI crosses, which have historically preceded massive price rallies for XRP.

The MACD is a trend-following momentum indicator that identifies potential changes in an asset’s trend. The ADX is the Average Directional Index, and DI stands for Directional Indicators. The ADX determines the strength of a trend, whether it’s an uptrend or a downtrend. The DI lines identify the direction of the trend. 

Notably, the MACD indicator contains two lines: the MACD line and the signal line. Jaydee has identified a pattern observed when the MACD line closes above the signal line on the monthly timeframe. This pattern is further supported by a cross in the ADX/DI indicator. A close above the zero level for the MACD confirms the bullish momentum.

In discussing the current scenario, Jaydee emphasized that the ADX/DI and MACD indicators want to confirm the bullish crosses. He recalled that after similar confirmations, XRP’s price experienced impressive gains, ranging from 12x to 634x within a year.

Historical Data

Data from the monthly chart reveals that XRP underwent a remarkable rally in the past due to this pattern. Notably, from December 2013 to February 2017, the asset faced an extensive four-year downward trendline. 

XRP MACD

XRP MACD

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However, a dramatic breakout occurred following this period, resulting in an astounding 63,400% surge to an all-time high of $3.3170 in January 2018. This remarkable rally unfolded 306 days after the MACD and ADX/DI crosses.

Following the $3.3170 all-time high, XRP experienced another downtrend that persisted for two and a half years, stretching until October 2020. 

Interestingly, after the MACD and ADX/DI crossed again in October 2020, XRP underwent a significant reversal similar to the one observed in 2017. Over 365 days, XRP surged by 1,200%, reaching a high of $1.9669 in April 2021.

XRP Observes Similar Events

XRP is amidst yet another downtrend, lasting for the past two years. Jaydee’s charts and analyses indicate the possibility of a breakout akin to the one observed in 2017 and 2020, leading to a potential high in 2024 or 2025.

In a subsequent tweet, Jaydee specifically observed similarities between the current market structure and the one seen before the 2017 impulse move-up. However, he noted that short timeframes often have false signals, urging caution while interpreting the data. Despite the similarities, Jaydee remained cautious about drawing immediate conclusions.

If XRP replicates the magnitude of the rally witnessed in 2017, the asset could rally by up to 63,400% at the projected time. This could skyrocket XRP’s price to a massive $438. However, Jaydee has refrained from making any price predictions.

Jaydee’s updated chart further suggested a possible textbook retest of the current two-year trendline to establish it as a support level before any potential breakout occurs. Nevertheless, he expressed uncertainty about the timing and outcome of such a move.

Notably, the analyst emphasized that historically, it took a year before XRP reached its all-time highs after breaking market structures. Hence, he posited that the next year could witness the re-emergence of all-time highs for XRP.

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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