XRP is trading at roughly 70 cents per token, but if the recent bullish crossover in the high time frame is just the beginning of an upcoming uptrend, the cryptocurrency could be poised for an explosive rally.
Looking for all-time highs in XRP
XRP is among the few major cryptocurrencies that failed to set a new all-time high in 2021 above its peak in 2018. The lack of strength after three years of record-breaking price stability could be due to the fact that 2018 had a By 50,000%.
When this rally occurred at that time, it happened just as the three-month Fisher Transform indicator had turned to the upside. This was the first time the Fisher Transform indicator crossed the uptrend and it was activated along with the breakout from the downtrend line.
The second Fisher Transform 3M signal crossed the uptrend from a much lower level, but failed to produce the same significant uptrend as the first crossover. Now the crossover is back and is occurring at levels that match the first epic spike.
Could the third time be the charm and produce another rally similar to the first crossover?
XRP to over $6? | SRPUSD on TradingView.com
Possible target for the trending triangle
Given the law of diminishing returns, the probability of another 50,000% rally is very low. However, that doesn’t mean that something special couldn’t be on the way.
XRP is also breaking out from the downtrend line and triangle pattern on the 3M time scale. The target for this pattern based on the scaling rule is an 850% upside, if the price target is achieved. This realistically puts XRP at a minimum of $6.
A breakout of the previous all-time high from 2018 could gain further strength, which could lead to an exceedance of the pattern-based price target.
Triangles are typical of wave 4 according to the Elliott Wave principle, and appear just before the final move in the sequence. Although this pattern is bullish for XRP, after the next big rally and a new all-time high, things could get ugly. Cryptocurrencies may be heading into a bear market for a longer period.