XRP Looks For 900% Rally as It Forms a 1M Japanese Candle Setup Similar to the 2017 Pattern

XRP could be on course for a substantial rally amid the gradual shift in market sentiments, as it recently printed a one-month candle pattern similar to the 2017 setup that eventually resulted in a 900% rally.

Tony, a prominent Bitcoin (BTC) trader and founder of CoinChartist, first called attention to this pattern in a recent market analysis. His commentary suggested that most market participants might not get enough time to accumulate more XRP tokens before the next bull run.

The analyst presented a 1-month XRP chart showcasing a peculiar candlestick setup that could signal an imminent explosive run. Interestingly, XRP formed this exact candlestick pattern six years ago before recording one of its most substantial historic runs.

The 2017 Formation

Notably, the pattern started with the formation of a green candle in August 2017 when XRP began the month at $0.1634 and closed at $0.1462, representing a 58% monthly increase. However, XRP lost most of those values the next month, closing September 2017 at a 23.42% loss.

The bears aimed to push the losses to October but faced resistance from the bulls, leading to a meager 0.92% decline. XRP recorded a comeback in November 2017, with the bullish sentiment spilling to December when the asset soared to a high of $2.4740 amid a 746% monthly surge.

XRP Records Exact Setup

Interestingly, XRP has formed a similar setup, with this cycle’s pattern starting in July this year. Like the previous pattern, XRP first saw a massive increase in July, closing the month with a 47% gain amid the favorable ruling in the Ripple vs. SEC case.

However, a subsequent retracement saw XRP shed off 26.75% of these gains in August, similar to the correction in September 2017. After the correction, XRP aimed to recover its lost value but faced resistance from the bears, leading to a meager 0.84% gain in September of this year.

October was particularly favorable to XRP amid a series of victories recorded by Ripple in the lawsuit. Like in November 2017, XRP began its bullish run for the current cycle in October, soaring by a modest 16.54%. The momentum has spilled to November, with XRP up 9% this month.

Tony believes the massive surge that took XRP to $2.4740 in the earlier cycle will also materialize in this cycle. He explained that as the market records thin order books, people rushing to cover their short positions and a fear of missing out can trigger this imminent price rally.

While the analyst does not explicitly state a price target, his chart projections suggest XRP could surge to the $4 territory this month, with a subsequent rally near the $6 territory in December. Hitting $6 would represent an 816% increase from XRP’s current price of $0.6549.