The price of XRP was shows signs of consolidation in recent days and oscillates between $2.30 and $2.50. The overall cryptocurrency market has been relatively stable, as has XRP managed to maintain its level over $2.20.
Despite the ponderous pace, technical analysis shared by a cryptocurrency analyst known as ChartNerd on X suggests that XRP may be preparing for a massive breakout that could take it from current levels to a long-term target above $27. The analysis is confirmed by a chart showing many coincidences in favor of such a large-scale movement.
XRP technical analysis indicates growth
According to ChartNerd, XRP has now completed a symmetrical triangle formation that has been forming for several years. This breakout comes above the multi-year rising support line from 2017. The chart also shows an crucial resistance block that has previously restrained the XRP price during previous rallies in 2017 and 2021.
XRP broke this resistance block a few months ago, but recently tested it again during last week’s crash. The rebound from this resistance block reinforces the belief that XRP will rebound significantly soon. A breakout from this long-term consolidation zone, combined with a multi-year ascending trendline, provides the technical basis for a potential move towards significantly higher price targets.
Another crucial confirmation occurred during flash failure was a successful retest of the 3-month 10 EMA. This retest serves as a confirmation point for the recent breakout, showing that XRP is maintaining its structure on higher time frames. Moreover, the analysis shows that XRP has regained the upper regression line of the Gaussian Channel, which represents the dynamics of the long-term trend.
This alignment of the EMA retest with the Gaussian channel suggests that sturdy upward momentum is beginning to build. ChartNerd calls this convergence of many indicators the “convergence zone.”
Fibonacci extension targets from $8 to $27
The analysis ends with a clearly defined Fibonacci extension action plan that defines the next XRP price targets. ChartNerd Fibonacci Levels set your first main goal at $8.47, which corresponds to the extension of 1.272, then $13.78 at 1.414 and finally 1.618 extension for $27.70.
This sequence signifies the complete technique a replica of the 2017 XRP bull runscaled to the current breakout structure. XRP then hit all three Fibonacci extensions from the previous low after breaking above a similar resistance block.
If these predictions come true, XRP could experience its biggest growth in years. A move towards $27 can occur in one of two ways: either through a sturdy, near-vertical rally similar to the explosive rally of 2017, or through a series of measurable gains highlighted by corrections at each resistance level. Nevertheless, both scenarios have the same bullish structure.
At the time of writing, XRP is trading at $2.44, up 1.4% in the last 24 hours.
Featured image from iStock, chart from Tradingview.com
