While XRP retests a crucial support area, some analysts have suggested that the altcoin is preparing for a massive expansion in the coming months, as a potential trend reversal begins to form and its 2017 formula repeats.
XRP Gears Up For Massive ExpansionOn Friday, XRP reached a 12-day low, falling to the $2.02 area before bouncing. Notably, the cryptocurrency has been trading within the $2.05-$2.35 area for nearly two weeks, moving between the mid and lower zones of this price range for most of this period.
However, it has broken out of this structure and recorded a higher high for the first time in months after the start-of-the-year rally, setting the stage for a potential reversal. “Now, we have to maintain this bullish structure at any cost and form a higher low on the next dip,” Sjuul warned.
At the time, XRP saw a textbook multi-year symmetrical triangle formation breakout, followed by a multi-month ABC consolidation before its 1,500% mark-up. This time, the cryptocurrency has repeated a similar symmetrical triangle pattern breakout, and it is currently in Wave C of its ABC consolidation period.
Q1 Close To Define XRP’s FutureIn 2014, XRP saw a bearish candle print in the three-month timeframe after a remarkable pump, which was followed by a correction and consolidation “for quite a couple of years,” he explained.
“The same happened again in 2018. We had this massive rally for XRP, and as soon as we printed a three-month bearish candle in the Heikin-Ashi Candle formation, (…) we entered into the bear market,” ChartNerd continued.
“We have until March before this candle closes. (…) So, what we don’t want to see is this full-bodied three-month Heikin-Ashi Candle, because if we see it, this is where we are likely to see a deeper correction for the next six to nine and even 12 months,” the analyst concluded.
As of this writing, XRP is trading at $2.05, a 1.7% decline in the weekly timeframe.
