Javon Marks, a prominent market analyst, highlights a significant bullish indicator for XRP, suggesting a potential surge that could see its value multiply by 360 times to $200.
Marks’ analysis comes at a time when XRP struggles to hold above the $0.51 support, a crucial level required to hedge against any collapse to the $0.50 zone. The analyst based his view on various technical indicators that point to a hidden bull divergence, a pattern that could herald substantial gains for XRP investors.
XRP Forms Bullish Hidden Divergence
A hidden bull divergence occurs when the price of an asset makes a higher low while a momentum indicator, such as the Relative Strength Index (RSI), makes a lower low. This pattern suggests that despite a price retracement, the underlying bullish momentum remains strong.
With XRP, both the RSI and price have confirmed this hidden bull divergence, signaling underlying strength within the existing uptrend. Notably, on the 18-day chart, XRP has continued to record higher lows since 2020, whereas its RSI has continuously witnessed lower lows since 2016.
$XRP (Ripple) and a 360X
Moment by moment, prices of XRP inch closer and closer to the coinciding point of the showcased Pennant/Coil Pattern, and a bullish breakout can be what's in store as the RSI and Price confirmed a Hidden Bullish Divergence that technically, implies… https://t.co/jFmsz2peFf pic.twitter.com/7ESsbnwKLO
— JAVON⚡️MARKS (@JavonTM1) June 1, 2024
In addition to this bullish divergence setup, Marks notes that XRP is nearing the convergence point of a Pennant or Coil Pattern, a technical formation that often precedes a breakout. A pennant pattern typically features converging trend lines and usually comes before a continuation of the prior trend.
XRP started forming this large multi-year pennant structure when it dropped from the all-time high of $3.31 in January 2018. Given XRP’s recent price movements, this pattern is forming at a critical juncture, potentially leading to a significant bullish breakout.
Marks suggests that the significance of this hidden bull divergence is further amplified when considering XRP’s historical performance. He points out that XRP has previously experienced an astronomical rise of over 110,000%, demonstrating its potential for explosive growth.
A Lofty $200 Price Target
The analyst projects that if XRP breaks out as anticipated, the subsequent price surge could be extraordinary. He suggests that with a logarithmic breakout and sustained follow-through, XRP could see gains exceeding 36,000%, pushing its price into the $200 range. Marks has continued to project this price target.
For the uninitiated, analysts leverage logarithmic charts to showcase exponential growth and to provide a clearer picture of price movements over large time scales. A breakout on such a chart indicates a significant switch in market sentiment and potential for impressive gains.
In addition, Marks highlights that XRP has previously shown its potential for rapid appreciation, with past gains reaching as high as 1110 times its initial value. This historical precedent adds weight to his current projection, making the forecasted 360X surge reasonable.
However, multiple investors have expressed doubt due to the potential impact on XRP’s market cap. A price of $200 would lead to a market valuation of $11 trillion for XRP, bigger than the combined market cap of the largest tech giants Microsoft (MSFT), Apple (AAPL) and Nvidia (NVDA).
Meanwhile, XRP currently changes hands at $0.5186 at the reporting time, up by a meager 0.30% today. Its RSI (46.6) and commodity channel index (-36) suggests that it is far from oversold. This indicates that XRP has more room for growth in this bull run, but the extent of this growth remains uncertain.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
