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Tony Severino, a Chartered Market Technician, has highlighted a setup in the XRP chart that suggests the crypto asset is on the verge of a powerful rally that could push its price toward the $20 mark.
According to Severino, XRP’s price is forming a classic Elliott Wave structure, with the digital asset poised to enter its Fifth Wave. Notably, the fifth wave is often characterized by sharp upward movements in Elliott Wave theory.
Analysis of XRP’s Elliott Wave Structure
In the chart shared by Severino, the first and third waves led to significant gains for XRP during the 2014 and 2017 market cycles, respectively. The 2017 wave was particularly powerful, with XRP surging by over 70,000% during that period.
Meanwhile, a bearish phase followed these two waves, specifically Wave 2 in 2016 and Wave 4 in the current ongoing phase of 2024.
Interestingly, Severino’s chart shows that XRP is on the verge of breaking out of its fourth wave, signaling the start of an explosive fifth wave with a projected price target of $20.
Currently, XRP is trading at around $0.55, so reaching $20 as projected would result in a massive gain of 3,536% for current XRP holders.
Other Technical Indicators Supporting an Impending XRP Surge
In addition to the Elliott Wave structure, Severino’s analysis also incorporates other bullish technical indicators. Specifically, the chart shows XRP consolidating within a symmetrical triangle, which often signals an impending breakout.
The triangle, marked with an A-B-C-D-E pattern, reflects a tightening price range that typically precedes a significant price movement once the pattern resolves.
Adding to the bullish case, XRP’s Relative Strength Index (RSI) is approaching a key downtrend resistance, according to Severino.
He suggested that if XRP breaks above this long-standing RSI resistance, it would signal a surge in buying momentum, further supporting the potential for a rally.
Sentiment Around XRP in the Crypto Market
While XRP has traded sideways in recent months, the convergence of these technical signals suggests that a major move could be on the horizon.
Pro-XRP market analysts have stressed that virtually every metric is pointing to an impending explosive surge for XRP.
However, XRP has continued to show disappointing price performance, even as Bitcoin has broken multiple all-time highs this week. This has led some to continue doubting the bullish narrative surrounding XRP.
In response to Severino’s post, an X user named Wide Field remarked that, for years, the market has been engaging in wishful thinking about XRP, but the price has failed to reflect any substantial change.