Back to the list

XRP Finally Breaks 2-Year Trendline: Is a 504x Surge Incoming?

source-logo  thecryptobasic.com 31 May 2023 07:45, UTC

XRP finally breaks an elongated downward trendline it has been caught in for the past two years, paving the way for a new chapter.

XRP has been bucking the overall market trend in the past few days, registering gains while most assets face declines. This modest solo run has helped the asset break out of a downtrend it’s been caught in for the past two years. The last time this breakout happened, XRP soared by 504x over one year.

Prominent chartist JD first highlighted the bullish turn of events in analyzing today’s asset price action. Citing data from a daily chart, he called attention to the fact that XRP was previously caught in a bearish trendline for two years from December 2014.

#XRP – We just Broke 2year trendline! 😱😵

In 2017, after CONFIRMED breakout of 2year trendline, we did a 504x in 1-year! Can we break 0.52 end of week?

Retweet/Like for $XRP/USD monthly chart update tomorrow!

(Patreons, I'll post 5 XRP charts tomorrow after MONTHLY close!) pic.twitter.com/96iG9IueKV

— JD 🇵🇭 (@jaydee_757) May 31, 2023

Notably, XRP had rallied to a high of $0.03 on December 18, 2014, before facing fierce resistance from the bears. XRP started facing intermittent but gradual declines from that point, essentially printing lower lows and lower highs for up to two years. This led to the formation of a downward trendline.

XRP continued to plummet until it hit a low of $0.0045 on March 10, 2017, marking an 85% drop from the high of $0.03 witnessed in December 2014. Despite recovering from the lows of March 2017, XRP remained in the downtrend until it finally broke out in April.

According to JD, XRP rallied by up to 504x in the space of a year following the breakout, as it soared to its all-time high value in January 2018.

XRP Looks to Engineer Another Solo Run

Interestingly, XRP started facing a similar downtrend after it dropped from the high of $1.9 on April 14, 2021. XRP remained in the clutches of this downward trendline despite the periodic surges witnessed in September 2022 and this March.

However, XRP has finally broken the downtrend in its latest solo run. As recently disclosed by The Crypto Basic, XRP has defied the prevalent market-wide trend in the past week, up 11.51% over the last seven days, while assets like BTC, and ETH are facing losses.

Santiment pointed out that this solo run is accompanied by two astronomical surges in XRP address activity, marking history’s second and third-largest activity spikes. Notably, the network observed a similar activity spike in March when XRP eventually soared by 45%.

Whether XRP will engineer a similar price surge and eventually embark on the same 2017 rally remains to be seen. Meanwhile, in the short term, CryptoBull, another crypto analyst, noted that XRP faces resistance at its current position. He noted that if XRP can break above the level between $0.52 and $0.54, it would sail smoothly to $0.90.

Similarly, Egrag, a prominent trader, emphasized that XRP needs to close above $0.55 on the daily timeframe for its run to continue. XRP is currently trading for $0.5193 as of press time, up 3.74% in the past 24 hours. The asset has gained by 35.46% in the past three months.