After an extended period of sideways movement, XRP may be approaching an important technical juncture. Analyst Maxi's analysis points to a bullish formation reminiscent of market structures seen in 2017.
Potential XRP Breakout
A recent chart shared by crypto analyst Maxi highlights a potential breakout with a long-term target of $8. The chart illustrates two distinct symmetrical triangle formations. The first one formed between 2014 and 2017 and culminated in a breakout that propelled XRP to its all-time high in early 2018.
Following that explosive move, the asset entered a multi-year downtrend and consolidation period, eventually stabilizing around $0.55. The chart also shows that the digital asset has broken out of the second triangle pattern, which spans from 2021 through 2024.
Momentum Indicators Support Analysis
Momentum indicators shown at the bottom of the chart further support the structural analysis. Historical Relative Strength Index (RSI) spikes are marked with arrows, illustrating behavior during the 2017 rally. The asset experienced two spikes: one during the initial climb, followed by a brief consolidation period, before another spike coinciding with its all-time high.
The rally that began in November after former SEC Chair Gary Gensler’s resignation announcement caused an RSI spike. Maxi pointed out on the chart that an upcoming spike could send the digital asset toward $8.
XRP Prospects and Target Levels
The analyst’s projection of $8 assumes a continuation of the historical pattern, heavily relying on similar market dynamics in the current cycle. This symmetry offers a compelling technical argument, and other analysts have set higher targets based on this repeating historical pattern.
Currently, the asset is trading at $2.16, gearing up for another rally. A breakout above current levels, followed by sustained momentum, could set the stage for a longer-term push toward $8.
In light of the analysis presented, XRP may be on the verge of a significant technical shift. Given market activities and historical patterns, monitoring price dynamics may be key to understanding its future.
