XRP could be setting the stage for an imminent bull run as a prominent technical analyst Identifies a crossover with the monthly MACD indicator.
Amid the prevalent market-wide downtrend, renowned technical analyst Egrag has unveiled an insightful analysis, suggesting that XRP might be on the brink of a significant upward trend.
In his latest XRP analysis, Egrag emphasized the necessity of interpreting TA messages effectively, as he drew parallels between Technical Analysis (TA) and spoken language.
#XRP Monthly MACD:
Technical Analysis (TA) functions much like any spoken language. To comprehend it, you must possess the skill to interpret its messages.
— EGRAG CRYPTO (@egragcrypto) August 23, 2023
The focal point of the analysis is the Monthly Moving Average Convergence Divergence (MACD) chart. Egrag indicated that the chart’s recent development had paved the way for a potential bull run.
Historically, each instance of a bullish crossover on the monthly MACD has heralded a subsequent bull run.
Egrag’s accompanying chart showcases a fascinating trend. Whenever the MACD line (blue) crossed above the signal line (orange), XRP’s price surged significantly.
XRP’s Historical MACD Movements
This phenomenon was notably observed in March 2017, when XRP traded at a mere $0.0055. Following the crossover, XRP embarked on an astonishing rally, witnessing a 60,209% surge to the ATH of $3.3170 in January 2018.
However, after reaching its all-time high, XRP faced persistent declines. These declines led to a drop in the MACD indicator. Subsequently, the MACD line dipped below the signal line, suggesting a looming downtrend. This downtrend materialized and persisted for 884 days.
In August 2020, the MACD line again crossed over the signal line after the 884 days of downtrend. This phenomenon indicated the end of the downtrend and the commencement of another bull run.
As anticipated, XRP witnessed another impressive rally from its low of $0.2500 in August 2020 to a high of $1.9669 in April 2021. This surge marked an exceptional 686% increase in eight months, despite the SEC lawsuit that began in December 2020.
Some market observers speculate that XRP’s rally might have been more substantial without the SEC’s legal action. The lawsuit triggered heightened sell-offs from anxious investors, mounting legal pressure on XRP.
After reaching the high of $1.9669 in April 2021, XRP collapsed. The MACD line once again dipped below the signal line, signifying a potential downtrend. The downtrend has persisted until now.
XRP Seeks to Mirror Past Actions
Notably, the monthly MACD line has now crossed above the signal line for the third time in XRP’s history. Drawing insights from past performance, Egrag is projecting the potential for another impressive rally.
Egrag emphasized that it has been 881 days since the ongoing downtrend started, suggesting a rally could be imminent. While he refrains from specifying a precise target price, the projected time for this potential surge could come in January next year.
Presently, XRP is trading at $0.5183, marking a minor 0.19% increase over the past 24 hours. If the asset replicates the 60,209% rally of 2017, it would hit $309. However, if it mirrors the 2021 rally, it could soar to $3.5.