XRP now appears to be following a pattern similar to what Bitcoin observed right before it hit the $100,000 milestone in 2024.
Specifically, this pattern involves persistent resilience displayed at a time when critical indicators are pointing to extreme bearishness. For context, XRP has continued to maintain a position above the $2 price support over the past six months despite continued bearish pressure.
XRP MACD Increasingly Bearish
Market data further confirms that amid this consolidation phase, the Moving Average Convergence Divergence (MACD). For the uninitiated, the MACD is a momentum tool that compares two moving averages, usually the 12-period EMA and the 26-period EMA, to assess trend strength.
Notably, it typically signals a bearish outlook when its main MACD line moves beneath the signal line or falls below the zero level, pointing to potential downward pressure. In cases like this, the MACD histogram also flips red or trends downward.
When this occurs, it is only natural that the underlying crypto asset continues to collapse in price. However, XRP defied this pattern. Specifically, when the MACD flipped bearish in early March following XRP’s rally to $3, XRP naturally collapsed, dropping from the $3 peak to the support at $2.
XRP Holds Strong Amid Bearish MACD
Nonetheless, after this drop, the MACD continued to flex bearish signals, even dipping much lower throughout March, with these bearish signals also spilling into April and May. Despite the deeper bearishness, XRP showed immense resilience and continued to hold above $2. Also, whenever it occasionally dipped below $2, it immediately recovered.
This shows that the bulls have persistently defended the $2 mark and continue to absorb the supply at this level. Such an interesting turn of events is massively bullish and confirms that once the bearish pressure subsides, a massive upsurge will immediately occur.
Bitcoin Witnessed a Similar Pattern in 2024
Notably, a similar pattern occurred with Bitcoin last year. Specifically, Bitcoin’s weekly MACD also flipped bearish in April 2024. This accompanied an initial price collapse for Bitcoin, pushing it toward the $50,000 region. After this, BTC held strong, finding support at $53,550 for the rest of the year despite the MACD remaining bearish.
Interestingly, once the MACD flipped bullish again in November 2024 on the back of the Trump-inspired upsurge, Bitcoin price broke out of the consolidation phase. As the rally persisted, BTC eventually hit the $100,000 milestone, jumping to a new ATH of $108,364 in December 2024.
If XRP continues to follow this pattern, it could witness a similar breakout. However, the extent of the resulting rally remains to be seen. For context, if XRP mirrors the extent of Bitcoin’s rally, which amounted to a 101% run, its immediate target would sit at around $4.02 before another upsurge.
However, there is every likelihood that XRP could see a much larger rally, considering its greater volatility potential. Currently, XRP changes hands at $2.09, up 3.83% this week.
DisClamier: 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 opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
