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XRP market sentiment heats up as an analyst identifies a major bullish signal that hints at a potential breakout in the near term toward a double figure.
The analyst, Javon Marks, pointed out in his latest analysis that the current XRP setup is similar to a price action structure from 2017, where XRP consolidated for over two years in a horizontal range between $0.004 and $0.009.
XRP Bullish Setup
Interestingly, this phase featured hidden bullish divergence, which indicates underlying strength in a market despite relatively stable prices. In early 2017, following the divergence, XRP experienced a major breakout, surging from its consolidation range to the $3.31 peak.
Now, in 2024, XRP is again displaying signs of strength. The analyst’s chart shows that since May 2023, XRP has been trading in a similar rectangular consolidation zone between $0.42 and $0.74.
This range has also featured a hidden bullish divergence, similar to the pattern observed in 2017. The analyst believes that this could signal another explosive breakout. The analyst also spotlighted a consolidation area marked in a green circle within the chart, which occurred just before XRP’s breakout in 2017.
This consolidation area is now playing out in 2024 as XRP forms another structure. The appearance of this structure could mean that XRP is now building up strength for the breakout. Despite not presenting a definite target, Marks’ chart depiction suggests a rally toward $17.
At its current price, XRP would need to rally 3,029% to clinch the $17 target. Notably, other analysts have also predicted a rally to this price level, with EGRAG, one such individual, citing what he calls the “Bent Fork” as a potential trigger.
XRP Current Position
On the daily chart, XRP is now showing signs of recovery. At the time of writing, XRP is trading at $0.5433, having bounced back from a steep decline at the end of September.
Between Sept. 30 and Oct. 3, the altcoin experienced a short-term collapse on the back of the SEC’s appeal notice but managed to stabilize and form a symmetrical triangle.
The chart shows that XRP is currently testing the 0.236 Fibonacci retracement level, which sits at $0.5443. For a breakout from the symmetrical triangle to materialize, XRP would need to decisively close above the 0.382 Fibonacci level at $0.5674.
If this happens, it could trigger a wave of buying interest, leading to a sustained move higher. The next major resistance level would be the 0.618 Fibonacci level at $0.6049, which would further confirm the bullish momentum.
Meanwhile, the Relative Strength Index (RSI) is currently at 46.63, a neutral reading. However, RSI values above 50 indicate bullish momentum. Given that XRP is trading just below the 50 mark, a slight uptick in price could quickly push the RSI into bullish territory.