XRP has broken a multi-month descending trendline, gearing up for a rally to reclaim the $1 amid signs of the ASO indicator moving closer to a bullish cross.
The recent breakout was highlighted by XRP Captain, a pseudonymous XRP analyst, in a recent analysis. In the accompanying chart, he identified a bearish downtrend that had plagued XRP since the July 13 rally that saw it reclaim $0.9380 on the back of the lawsuit victory.
After reclaiming $0.9380, XRP started witnessing intermittent drops, forming lower lows and lower highs. This bearish pattern resulted in the formation of a downtrend.
XRP Captain confirmed that XRP has finally broken out of this multi-month descending trendline. The asset broke above the downtrend amid a 3-day winning streak on Sept. 14. However, it sealed this breakout by closing above the trendline on Sept. 15.
Following the break, XRP Captain believes XRP could be gearing up to reclaim the much-coveted $1 price in the short term. He advised calm in the market, expressing confidence in the asset’s trajectory.
Analyst JD confirmed this bullish atmosphere, calling attention to a longer trendline. The analyst noted that XRP has continued to retest a 2-year trendline that it has traded below since 2021. Per JD, a rally would ensue once the asset breaks above this trendline.
XRP’s Long-Term Direction
Adding weight to this bullishness, EGRAG, another notable analyst, provided an update to his Average Sentiment Oscillator (ASO) setup. The Crypto Basic previously highlighted this setup in an earlier report.
Notably, EGRAG’s ASO setup contains light blue and pink lines. The analyst highlighted that whenever the light blue line crosses above the pink line, XRP engineers a monumental rally. This pattern played out in 2017 and 2021.
Interestingly, XRP is on the verge of repeating this bullish crossover. EGRAG first identified this in his earlier analysis. The analyst’s latest update on the setup shows that the two lines are closer to converging, having continued moving toward each other after a pause period.
#XRP ASO "Average Sentiment Oscillator-UPDATE":
Don't forget to review the post from July 8th for a clearer picture of the ASO's shape! https://t.co/d4elni4IEc
Presently, the ASO (Awesome Oscillator) has shifted its course, resembling small white circles, and is gradually… pic.twitter.com/447KCv0Dg6
— EGRAG CRYPTO (@egragcrypto) September 9, 2023
For the long term, EGRAG previously posited a 28,250% rally for XRP. Note that the 2017 crossover resulted in a 55,000% rally, while the 2021 cross led to a 1,500% surge. Should XRP appreciate by 28,250%, it could skyrocket to the $140 region.
XRP is changing hands at $0.4973 as of press time, up 0.97% today. The recent drop below $0.50 came from a two-day losing streak. However, the asset has shown resilience over the past month, with a meager 30-day loss of 1.84%.