XRP To Repeat Its 2017 Playbook? Analyst Forecasts 1,250% Expansion

Source: CryptoNewsNet Original Title: XRP To Repeat Its 2017 Playbook? Analyst Forecasts 1,250% Expansion Original Link:

XRP Gears Up For Massive Expansion

On 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.

Amid its recent performance, analysts noted that the altcoin “is starting to look better, especially after that bullish market structure break with a fresh higher high.” The trend has been consistently lower since August, exclusively printing lower lows and lower highs.

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. Maintaining this bullish structure and forming a higher low on the next dip are critical factors to watch.

Meanwhile, market observers have pointed to a striking similarity between XRP’s 2017 playbook and its current performance. The altcoin is repeating its 2016-2017 formula, which led to a massive rally toward its previous all-time high (ATH).

At the time, XRP saw a textbook multi-year symmetrical triangle formation breakout, followed by a multi-month ABC consolidation before its 1,500% markup. This time, the cryptocurrency has repeated a similar symmetrical triangle pattern breakout, and it is currently in Wave C of its ABC consolidation period.

A deeper Wave C retracement is possible if the multi-month $1.80 support is lost. Nonetheless, analysts suggest that “cycle formula repetition signals XRP is gearing up for expansion towards $8/$13/$27,” which would be a 300%-1,250% increase from the current levels.

Q1 Close To Define XRP’s Future

Despite bullish forecasts, there is an important warning for the next two months. According to analysts, “XRP has just over 2 months to invalidate this 3M bearish Heikin-Ashi candle formation,” or it will risk a massive correction.

In past instances, whenever the altcoin saw massive rallies followed by a red bearish candle on the three-month timeframe, it would “normally indicate the start of a downtrend or a macro consolidation period.”

In 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.” The same happened again in 2018. After a massive rally for XRP, as soon as a three-month bearish candle in the Heikin-Ashi Candle formation printed, the market entered a bear market.

Similarly, the cryptocurrency repeated the same performance in 2021. Now, XRP is starting to form a red candle in this timeframe and has approximately 2 months and 16 days to close the quarter on a positive note.

“We have until March before this candle closes. If we see a full-bodied three-month Heikin-Ashi Candle, this is where we are likely to see a deeper correction for the next six to nine and even 12 months,” analysts concluded.

As of this writing, XRP is trading at $2.05, a 1.7% decline in the weekly timeframe.