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XRP could record a massive price push, with a minimal target above $14, on the back of a bullish monthly engulfing candle and a retest of its multi-year ascending trendline.
The latest crypto market run has cooled following the resistance Bitcoin (BTC) faced at the $64,000 mark. As a result, XRP’s hopes of riding the market-wide rally to retain the $0.60 territory have been dashed. Nonetheless, market analysts remain confident of its long-term performance.
One such analyst is JD, a prominent chartist. In a recent post, JD identified the combination of two bullish patterns, which have in the past led to massive price surges for XRP. He emphasized that the crypto asset is looking to repeat these patterns.
A Combination of Bullish Patterns
The first pattern is a retest of a particular multi-year ascending trendline. Data from an XRP market cap chart shows that the formation of this ascending trendline began in May 2014 when its market cap dropped to a low of $24.24 million, coinciding with a price of $0.0031 at the time.
XRP’s market cap has continued to increase since then, owing to both its inflation and price surges, resulting in the formation of the ascending trendline. However, there have been occasions when the asset’s market cap slumped to retest the trendline.
According to JD, whenever this happened in combination with the formation of a monthly bullish engulfing candle, XRP recorded a rally. A bullish engulfing candle occurs when an asset forms a large green candle that completely engulfs or overshadows a previous bearish candle.
#XRP – Oh boy… Monthly close today. Last two times $XRP did the following, it went 🚀📈!!
1. Bounce off the multi-year trendline
2. Created a MONTHLY "Engulfing Candle close"!RT/Like for Monthly close update!
(Patreon/Discord – 5 different XRP chart will be posted tonight!)… pic.twitter.com/9angsftlEP— JD 🇵🇭 (@jaydee_757) February 29, 2024
XRP Seeks to Repeat History
The first time XRP recorded a combination of the ascending trendline retest and a bullish engulfing candle was in July 2014.
Shortly after witnessing these patterns, its market cap soared 1,921% from $42.8 million in July 2014 to $865.6 million in December 2014, with a price surge to $0.028.
XRP also witnessed the patterns in March 2017, leading to a 16,000% rise in its market cap to the peak of $128.49 billion in January 2018. This market cap high came from XRP’s price surge to the all-time high of $3.31.
JD believes a similar upsurge could occur if XRP confirms the bullish engulfing candle close this time. Notably, the asset’s market cap has already retested the ascending trendline. Should the bullish engulfing candle form, JD expects XRP’s market cap to soar to new highs.
While the analyst stressed that he is uncertain of the height of such an impending run, data from the chart suggests a rise in market cap to the $800 billion mark. For XRP to attain this valuation, its price would need to surge to $14.6 assuming the circulating supply of tokens remains stable.
XRP currently trades for $0.5934 at the reporting time, up 0.95% today and looking to breach $0.60. The token broke through $0.60 to hit a high of $0.6260 yesterday, but the resistance mounted by the bears at this level has again battered XRP below the $0.60 territory.