XRP has been on a volatile price action for the past three days since the start of May, trading between the lows and highs of $2.195 and $2.25, respectively. While XRP has spent most of the past two months correcting from its January high of $3.3, its 2-month candlestick is showing a strong green body, indicating that bulls are still in control on the higher timeframes despite the lower timeframe volatility.
Interestingly, a specific signal that has not been seen since XRP’s historic 2017 rally has returned, and the same trigger that led to a 20x price explosion that year is now back.
Technical pattern shows clear breakout structure on the 2-month timeframe
Technical analysis of XRP’s price action on the 2-month candlestick timeframe chart shows that the cryptocurrency is still trading in a bullish setup on a larger timeframe. This analysis, shared by crypto analyst JD on social media platform X, shows that XRP is emerging from a long-term triangle pattern, which has been consolidating its price since the 2018 peak.
The structure formed by this triangle includes a flat resistance trendline at the top and a gradually rising trendline below. XRP’s price performance in late 2024 saw it break above the upper resistance trendline, just as it did in a similar setup in the first few months of 2017.
Notably, XRP’s price broke above this trendline with force, helping it reach a multi-year high of $3.3. However, the subsequent price action has been corrected, with XRP now trading near the $2 price level.
Nevertheless, the presence of a bullish cross on the RSI means that a bullish setup is still in play, with crypto analyst JD highlighting a potential 20x increase.
Stochastic RSI Crosses Above 80: Same Spark From 2017
The presence of a cross above the 80 level on the Stochastic RSI makes the current bullish setup more credible. JD notes that the last time this crossover occurred was in 2017, just before XRP recorded a 20x gain in three months.
His chart visually illustrates this, showing a yellow highlight at the intersection point of the SRSI line during that historic breakout. The same cross has now been confirmed on the 2-month chart.
The SRSI cross occurs when the %K line crosses above or below the %D line within the Stochastic RSI indicator. In the case of XRP, the bullish signal of the cross is tested above the 80 threshold on the 2-month chart. The last time this happened was in 2017, XRP went on a four-month rally from $0.15 to its current all-time high of $3.40.
If a similar scenario were to develop, the target would be around $45. This may seem unrealistic considering the flow required to reach this level. Nevertheless, a rally from the recent SRSI cross could propel XRP price to a new all-time high.
At the time of writing, XRP is trading at $2.2I received this news from newsBTC
