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The monthly XRP RSI is on the verge of breaking above a 7-year downtrend, with analysts expecting an explosive surge to follow.
The crypto market has reached a decisive stage, as prices consolidate following a modest rally to negate the effects of the latest downturn. Specifically, XRP has continued to consolidate between $0.58 and $0.63 throughout this week following its recovery push.
Despite the recent consolidation, which serves as an evidence of a roadblock, analysts remain bullish. The optimism is as a result of the favorable positioning of multiple indicators. XRP RSI (Relative Strength Index) is one such indicator. Notably, the RSI on the monthly timeframe is on the verge of a historic movie.
XRP RSI Poised for a Breakout
Harry, a crypto chartist and analyst, called attention to this impending move on X. In a monthly XRP/USD chart, Harry showed that the XRP RSI has been moving underneath a descending trendline since late 2017. For context, the RSI initially spiked to 94.57 in December 2017 on the back of the XRP rally to $3.3 in January 2018.
$XRP – Behold our massive 7 year RSI resistance level x pic.twitter.com/LismcJaVF8
— Harry 🪝🏴☠️ (@HaraldoXRP) July 22, 2024
As the price dropped from this all-time high value, the XRP RSI witnessed a similar slump on the monthly timeframe. Since then, the RSI has been moving underneath a downtrend that formed from the 94.57 peak in 2017. Data suggests this downtrend could finally give way.
In addition, Harry’s chart shows an equally bullish pattern on the monthly chart involving the Bitcoin halving. Data confirms that XRP’s price typically witnesses a massive rally months after each Bitcoin halving. This pattern occurred after the May 2016 halving, leading to the upsurge to $$.31 in January 2018.
The pattern repeated after the April 2020 halving, with XRP price surging to $1.96 a year later. Now, with the latest Bitcoin halving taking effect in April 2024, the chances of an XRP uptrend are high. This is bolstered by the imminent breakout of the XRP RSI on the monthly timeframe.
Additional Indicators of an Imminent Uptrend
Market analyst Charting Guy also spotlighted the imminent bullish breakout in the monthly RSI. He confirmed that XRP price has also been trading within a 7-year symmetrical triangle amid the RSI downtrend. Consequently, a breakout of the XRP RSI could also coincide with a price breakout from the symmetrical triangle.
$XRP 1 month RSI about to break 6.5 year downtrend with a pending bullish cross..
while price has been consolidating in a symmetrical triangle that entire time..
probably nothing..
i will keep shilling $XRP because i think it is one of the biggest opportunities this cycle 🤷♂️ pic.twitter.com/EBiV5k3tuI
— Charting Guy (@ChartingGuy) July 16, 2024
In addition, Charting Guy showed that XRP typically records a price rally after a third bullish RSI crossover. This bullish crossover typically involves the RSI line (purple) crossing above the Signal line (yellow). XRP has already witnessed two of these crossovers, with the third on the verge of taking effect.
These multiple indicators all point to an imminent XRP rally, but the timing remains uncertain. Charting Guy insists this upsurge could happen in a few months. Notably, XRP currently trades for $0.5993, up 26% this month.