XRP Chart Analysis: Potential Price Targets of $10 and $50 Based on Historic Candle Formations

XRP Chart Analysis: Potential Price Targets of $10 and $50 Based on Historic Candle Formations

Crypto News – Renowned chart analyst EGRAG has outlined two potential price targets for XRP, $10 and $50, based on the cryptocurrency’s future trajectory, following the formation of a remarkable three green candle pattern.

In his analysis, EGRAG underscored the significance of candlestick formations in assessing an asset’s direction. Taking this into consideration, the chart analyst pointed out the emergence of a consecutive three green candle structure on the monthly chart, a rarity in XRP‘s history. Intriguingly, on both prior occurrences of this pattern, XRP witnessed substantial price surges.

Historical Background

EGRAG’s data indicates that the first time XRP displayed a notable three green candle formation was during Q4 2015 to Q1 2016. During this period, XRP surged impressively by 43.57%, climbing from $0.00421 to $0.00604 in December 2015. The bullish trend persisted into the following month, with a more modest increase of 6.06% in January 2016. The third bullish monthly candle closed in February 2016, registering a 23.80% surge from $0.00641 to $0.00793. Subsequent to these three green candle closes, XRP encountered resistance.

This resistance led to a price decline, followed by a prolonged consolidation phase marked by price fluctuations. XRP remained in this consolidation state for 12 months, spanning from March 2016 to February 2017. What followed was a significant price rally, resulting in an astounding 8,000% price increase in XRP from March 2017 to May 2017. Notably, this 8,000% surge also coincided with the formation of another three consecutive bullish monthly candles.

After the second occurrence of the three-candle structure, XRP again experienced a drop, followed by an extensive consolidation phase. However, unlike the previous consolidation, this second one lasted only five months, from July 2017 to November 2017. Following this consolidation, XRP surged by 1,506%.

XRP’s Path to $10 or $50

Presently, XRP has witnessed the formation of a third consecutive bullish three-candle structure this year. This formation occurred as XRP closed September with a 0.84% increase, October with a 16.54% surge, and December with a 1.05% gain.

EGRAG has affirmed that this bullish pattern is indicative of another substantial price rally. However, the magnitude of this rally will depend on the duration of the ensuing consolidation period. As XRP enters this consolidation phase, it could either remain in it for five months or for an extended 12-month period.

EGRAG suggests that if XRP consolidates for just five months, it may replicate the late 2017 rally, surging by 1,506%. Currently trading at $0.60, such a surge would propel XRP’s price to approximately $9.7, rounding to $10.

The analyst also emphasizes that if XRP undergoes a 12-month consolidation, the resulting rally could lead to an astonishing 8,000% increase. If XRP were to surge by 8,000% from its current price, it would reach a price of about $49.9, rounding to $50. However, it is crucial to note that these projections remain speculative and should be considered as educational content rather than financial advice.