XRP coin It has been on the agenda a lot lately. The broader cryptocurrency market experienced a downturn in April. However, some analysts predict that XRP has the potential to break out of the current downtrend.
Jonathan Carter, a well-known analyst, believes that XRP is poised for a significant rally and will potentially reach medium-term targets of $0.93 and $1.68. This prediction is based on XRP breaking out of its multi-year symmetrical triangle formation.
Symmetrical Triangle
A symmetrical triangle is a chart formation formed by the combination of trend lines, one sloping upward and the other sloping downward. This formation indicates a consolidation period in which buying and selling pressure is relatively balanced.
The price movement of the XRP coin over the last three years has formed a distinct symmetrical triangle. The upper trendline represents resistance, while the lower trendline acts as support. A break of this pattern in either direction indicates a potential shift in market sentiment.
A Coming Break
Carter specifically focuses on XRP’s price movements on the weekly timeframe. In April, XRP experienced a significant decline to $0.42. This caused a retest of the lower trend line of the symmetrical triangle. This retest after the decline period can be interpreted as a sign that potential buying pressure may emerge.
The recent market correction has dragged the price of XRP down. However, Carter is of the opinion that this downward trend may be coming to an end. Like other analysts, Carter detects similar symmetrical triangles and expects a breakout soon. This indicates that the current price trajectory could potentially reverse.
Potential Price Targets
Carter states a two-stage price target if a breakout occurs. The first target is the $0.93 level, which represents XRP’s highest point since July 2023. XRP rose to this level in July 2023 following a positive ruling in the ongoing legal battle with the US Securities and Exchange Commission (SEC). However, XRP encountered significant resistance at this level and dropped almost immediately.
The analyst expresses confidence that XRP will surpass the $0.93 level this time. This optimism paves the way for its medium-term target of $1.68. Reaching this price point would yield a significant gain of over 219.2% from the current XRP coin price of $0.5263.
There are several technical indicators that support Carter’s prediction. The MVRV Ratio for XRP has fallen to a low value recently. This suggests that the current market price is undervalued compared to the average price at which XRP tokens were previously traded.
Additionally, the XRP Commodity Channel Index (CCI) on the 1-hour chart strengthens the possibility of undervaluation. While some analysts are predicting higher targets based on bullish signals, Carter is taking a more conservative medium-term approach.
