A renowned analyst has noted the resurgence of a triangular price pattern that in a previous bull run sparked a 66,000% surge in the price of XRP.
Other analysts have drawn similarities between the current market conditions and 2017 when the price of XRP surged to new heights amid a stagnation around the $0.6 level.

XRP is forming a symmetrical triangular price pattern that it formed seven years ago, just before the price of the token exploded by over 66,000%, one crypto analyst has noted.

At press time, XRP trades at $0.5853, gaining 4.5% in the past day amid a 66% surge in trading volume to hit $2.62 billion, indicating a resurgence in investor interest.

Since dipping on Monday below $0.54, XRP has gained over 10% as it reverses its downward trend. The token set a monthly low at $0.4929 on Feb. 1 after a steep decline, but since then, it has gained 18.7% and has been setting higher lows.

In the last bull rally toward the end of 2023, XRP was one of the few cryptos that failed to ride the wave, with its highest point in the last three months of the year being at $0.71 in early November. However, according to one analyst, the token could be setting up for a massive rally that will mirror its record-setting rally in 2017.

Known to his 144k followers on X as Moonshilla, the analyst pointed to a symmetrical triangular price pattern that the token has been caught up in since hitting its 2017 high. This pattern, based on its cyclical highs and lows, has been converging as shown in the graph below.

The pattern is similar to the period between 2013 and 2017. XRP hit a then-record high in 2013 of $0.0614 before dipping, and in the years that followed, its attempts to break out past this level were rejected, creating a trading pattern whose upper trendline acted as a strong resistance for the crypto. In 2017, it finally managed to breach this resistance, and it was rewarded with 66,000% gains to set a new record high at $3.84 in early January 2018.

66,000% Rally for XRP?

Other analysts have identified trading patterns that indicate that XRP is on the verge of a breakout. As CNF reported, one such pattern focused on a trendline connecting the token’s cyclical highs.

Between 2013 and 2017, the token attempted to break past this trendline on several occasions but was rejected, and with every rejection, the price dipped further and created lower highs. However, it finally broke out in 2017 and shot its way into the top five cryptos.

This trendline has been repeating since 2017, but XRP recently breached past it, and if history is anything to go by, then the token is about to embark on a massive rally that could take its price to $288, the analyst believes.

And it’s not just on the price charts where XRP is showing major promise. As indicated on CNF earlier today, the XRP Ledger was singled out by the IMF as one of the best platforms for digital money in a report discussing the future of payments for Pacific Island Countries.

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Filed under: Bitcoin - @ February 28, 2024 5:18 pm