thecryptobasic.com
A technical analyst has drawn parallels between the current dynamics of XRP and the market trends observed in 2017, hinting at a prospective opportunity for a staggering 650x return.
In a recent update, technical analyst “JD” cautioned XRP investors to be mindful of their emotions and avoid panic-selling amid the current market conditions.
JD recalled the market events in 2017, where he observed some investors, whom he labeled “Dumb Money,” hastily parting ways with the market during a significant 60% crash.
According to JD, these impulsive investors risked missing out on a 65,000% gain simply due to a 60% crash. The technical analyst contends that the same emotions exhibited by “Dumb Money” in 2017 are now unfolding within the XRP market.
#XRP – I remember the emotions in 2017 during that 60% crash when "Dumb Money" Capitulated missing out on 650x!
Same emotions from "Dumb Money" now compared to 2017. Once at overbought, take profits w/no emotions!
Retweet/Like for updates!https://t.co/VdlpD9fz4z #XRPArmy…
— JD 🇵🇭 (@jaydee_757) February 1, 2024
XRP Capitulation Right Before Breakout
JD referenced an XRP market chart illustrating a four-year capitulation period. This period was followed by a substantial breakout characterized by a parabolic surge, ultimately reaching an all-time high in 2018.
During the four-year trendline, XRP traded as low as $0.005589, specifically in February 2017. However, eleven months later, the asset had surged by at least 650 times to claim an all-time high in the $3 range.
JD has identified a comparably prolonged capitulation period for XRP, highlighting a similar potential for a 650x gain. He observed that following the peak in 2018, XRP entered a 5.5-year trendline that is now due for a breakout.
In light of the forecasted gains anticipated in the coming days, the analyst strongly advised XRP holders to resist succumbing to emotional impulses and abstain from panic-selling. In his words:
Cryptocurrencies have recently shown a lot of potential for growth and are expected to continue to rise in value. Although dips and corrections are common and even necessary in a bullish market, they can also be seen as buying opportunities for investors who want to take advantage of the market’s potential. It’s important to note that these investments come with risks, so it’s crucial not to trade blindly. With that said, there is a huge potential for significant gains in the upcoming months, making it an appealing investment opportunity for those who are willing to do their research and make informed decisions.
Moreover, according to his guidance, the opportune moment to divest is when an asset becomes overbought. He advocated for the rational action of taking profits without emotional interference.
Notably, JD is not the sole technical analyst who has predicted an imminent bullish breakout of XRP. Several market analysts have also pointed to the same projection, drawing from historical performance as evidence to support their forecasts.
Meanwhile, some other experts have contested the relevance of historical charts in predicting XRP’s future value. They argue that a historical chart devoid of a utility chart is futile in forecasting XRP’s future value.