XRP appears to be heading towards a significant surge, driven by the gradual shift in market sentiment. A recent one-month candle pattern has emerged, bearing a resemblance to the setup observed in 2017, which ultimately led to a remarkable 900% rally. Tony, a well-known Bitcoin (BTC) trader and the founder of CoinChartist, highlighted this pattern in a recent market analysis. According to his insights, there might be limited time for market participants to accumulate more XRP tokens before the next bullish trend.
In his analysis, Tony showcased a one-month XRP chart featuring a distinctive candlestick arrangement that suggests a potential upcoming explosive rally. Notably, this coin had previously formed this exact candlestick pattern six years ago, preceding one of its most substantial historical surges.
Significantly, the sequence commenced with the emergence of a green candle in August 2017, as XRP initiated the month at $0.1634 and concluded at $0.1462, indicating a notable 58% monthly increase. Nevertheless, the majority of those gains were relinquished the following month, with September 2017 concluding at a loss of 23.42%. Despite bearish efforts to extend the downturn into October, resistance from the bulls resulted in a modest decline of 0.92%.
XRP experienced a resurgence in November 2017, and this optimistic momentum carried over into December, propelling the asset to reach a peak of $2.4740 amid an impressive 746% monthly surge.
XRP Mimics Historical Setup
Interestingly, a comparable setup has unfolded for XRP, initiating in July of the current year. Similar to the prior pattern, XRP witnessed a substantial surge in July, concluding the month with a notable 47% gain, coinciding with a favorable ruling in the Ripple vs. SEC case.
However, a subsequent retracement resulted in shedding 26.75% of these gains in August, mirroring the correction observed in September 2017. Following the correction, XRP sought to regain its lost value but encountered resistance from the bears, resulting in a marginal 0.84% gain in September of this year.
October proved particularly favorable for this coin, marked by a series of legal victories for Ripple in the lawsuit. Parallel to November 2017, XRP commenced its bullish run for the current cycle in October, experiencing a modest surge of 16.54%. This momentum has extended into November, with this coin posting a 9% increase this month.
Tony is confident that the substantial upswing that propelled XRP to $2.4740 in the previous cycle is likely to repeat in the current cycle. He elucidates that thin order books in the market, a rush among traders to cover short positions, and a prevailing fear of missing out could collectively instigate this impending surge in price.
While the analyst doesn’t explicitly specify a precise price target, his chart analyses strongly imply that this coin has the potential to climb into the $4 range this month, followed by a subsequent rally toward the $6 range in December. Achieving $6 would signify an impressive 816% increase from XRP’s current price of $0.6549.