8 November 2023
XRP is trading at roughly 70 cents per token, but if a recent high timeframe bullish crossover is just the start of the upside to come, the cryptocurrency could be gearing up for an explosive rally.
Fishing For New All-Time Highs In XRP
XRP is among a few major cryptocurrencies that failed to set a new all-time high in 2021 above its 2018 peak. The lack of strength three years following the still-standing price record could be due to the fact 2018 capped off a 50,000% surge.
When that surge back then happened, it occurred just as the 3-month Fisher Transform flipped bullish. That was the first instance of the Fisher Transform crossing bullish and it triggered alongside a breakout from a downtrend line.
The second Fisher Transform 3M signal crossed bullish from much lower, but failed to produce the same substantial upside as the first crossover. Now the crossover is back and it is happening at levels that match the first epic rally.
Could the third-time be the charm and produce another rally similar to the first crossover?
The Possible Target Of The Triangle Thrust
Considering the law of diminishing returns, the probability of another 50,000% rally is extremely low. However, that doesn’t mean something special couldn’t be on the way.
XRP is also breaking out from a downtrend line and triangle pattern on the 3M timescale. The target of this pattern based on the measure rule is an 850% rally, if the price objective is met. This realistically puts XRP at a minimum of $6.
Breaching the previous all-time high from 2018 could cause any really to pick up even more steam, potentially overshooting the pattern-based price objective.
Triangles are typical of a wave 4 according to Elliott Wave Principle, and only appear before the final move in a sequence. Although this pattern is bullish for XRP, after the next major rally and new all-time high, things could get ugly. Crypto might be headed for longer duration bear market.