Tony Severino, a Chartered Market Technician, has highlighted a setup in the XRP chart that suggests the crypto asset is on the verge of a powerful rally that could push its price toward the $20 mark.

According to Severino, XRP’s price is forming a classic Elliott Wave structure, with the digital asset poised to enter its Fifth Wave. Notably, the fifth wave is often characterized by sharp upward movements in Elliott Wave theory.

Analysis of XRP’s Elliott Wave Structure

In the chart shared by Severino, the first and third waves led to significant gains for XRP during the 2014 and 2017 market cycles, respectively. The 2017 wave was particularly powerful, with XRP surging by over 70,000% during that period. 

Meanwhile, a bearish phase followed these two waves, specifically Wave 2 in 2016 and Wave 4 in the current ongoing phase of 2024.

Interestingly, Severino’s chart shows that XRP is on the verge of breaking out of its fourth wave, signaling the start of an explosive fifth wave with a projected price target of $20.

Currently, XRP is trading at around $0.55, so reaching $20 as projected would result in a massive gain of 3,536% for current XRP holders.

Other Technical Indicators Supporting an Impending XRP Surge

In addition to the Elliott Wave structure, Severino’s analysis also incorporates other bullish technical indicators. Specifically, the chart shows XRP consolidating within a symmetrical triangle, which often signals an impending breakout.

The triangle, marked with an A-B-C-D-E pattern, reflects a tightening price range that typically precedes a significant price movement once the pattern resolves.

Adding to the bullish case, XRP’s Relative Strength Index (RSI) is approaching a key downtrend resistance, according to Severino.

He suggested that if XRP breaks above this long-standing RSI resistance, it would signal a surge in buying momentum, further supporting the potential for a rally. 

Sentiment Around XRP in the Crypto Market

While XRP has traded sideways in recent months, the convergence of these technical signals suggests that a major move could be on the horizon.

Pro-XRP market analysts have stressed that virtually every metric is pointing to an impending explosive surge for XRP.

However, XRP has continued to show disappointing price performance, even as Bitcoin has broken multiple all-time highs this week. This has led some to continue doubting the bullish narrative surrounding XRP.

In response to Severino’s post, an X user named Wide Field remarked that, for years, the market has been engaging in wishful thinking about XRP, but the price has failed to reflect any substantial change.

Amid the ongoing market uptrend, XRP monthly Bollinger Bands have finally begun to expand after an extended period of contraction. 

The latest development marks the end of a 19-month consolidation phase, the longest in XRP’s history. According to market analysts, historical data suggests that when XRP exits a contraction phase, it often undergoes substantial price surges.

For the uninitiated, Bollinger Bands has an upper, middle (moving average), and lower band. During periods of low volatility, these bands contract, indicating a “squeeze,” while high volatility causes them to expand. Such contractions typically lead to rapid price swings.

XRP Historical Bollinger Bands Expansions

The Great Mattsby, a market analyst, spotlighted this. For instance, XRP’s price has responded explosively after such Bollinger Band squeezes. An example occurred between August 2016 and February 2017, when XRP’s Bollinger Bands contracted for six months. 

Following this contraction, XRP’s price soared from $0.00626 to $3.31 within a year, achieving a staggering gain of over 52,000%. This rally became one of XRP’s most remarkable historical price movements.

A similar, though less extreme, pattern emerged in late 2019 and 2020. The Bollinger Bands contracted from December 2019 to October 2020—a 10-month period. In the months following this squeeze, XRP’s price surged from $0.2419 to a high of $1.96 in April 2021, marking a 686% increase over seven months. 

However, unlike the 2017 rally, this price movement was somewhat restrained due to the Securities and Exchange Commission (SEC) lawsuit filed against Ripple in December 2020, which led to XRP’s delisting from several major exchanges and large-scale selloffs.

XRP’s Bollinger Bands Now Expanding

In the most recent scenario, XRP’s Bollinger Bands had been tightening since October 2023, creating a prolonged squeeze that, according to past patterns, could lead to a large price movement.

Currently, XRP is set for another potential breakout, as it benefits from the momentum of a broader market rally spurred by Donald Trump’s recent victory in the U.S. presidential election. XRP has already seen a 28.37% increase in November alone, bringing its price to the $0.65 region.

Chartered Market Technician Tony Severino noted XRP’s current position above the upper Bollinger Band, pointing out that the Bollinger Band Width (BBW) is now beginning to widen from the narrowest squeeze in XRP’s history. He described this movement as a potential setup for a “shock and awe” price rally.

Currently, XRP changes hands at $0.6517, down 1.7% over the past 24 hours but up 22% in the last week. Its most immediate concern is reclaiming and holding above the $0.70 region before the next leg up.

XRP recently surged 45%, approaching its $0.74 year-high. Analysts caution that FOMO and funding rates on major exchanges could influence further gains.

XRP has posted a massive rise this week, gaining over 23% following an explosive performance on Tuesday. The token’s recent performance contrasts sharply with last week, when broader market momentum, spurred by Donald Trump’s U.S. presidential election victory, lifted most cryptos except XRP.

However, XRP has rebounded, climbing 7.13% in the past 24 hours, drawing increased investor interest.

According to the analytics platform Santiment, XRP has witnessed a surge in social discussions. Over 4% of all crypto-related conversations now center around XRP, fueled by its 45% price breakout over an eight-day period.

XRP Uptrend Continuation Hinges Avoiding Excessive FOMO

This surge in social engagement often coincides with significant price movements, as highlighted by historical patterns. 

Santiment also noted that previous spikes in XRP’s social dominance have acted as reliable indicators of market shifts. A recent spike served as a signal for a market bottom, suggesting a recovery phase, while an earlier peak aligned with a market top, resulting in a correction.

Accordingly, Santiment cautioned that XRP’s ability to surpass its March high of $0.74 would depend on maintaining balanced funding rates on major exchanges like Binance. The platform emphasized that sustained price growth hinges on avoiding excessive long positions driven by fear of missing out (FOMO).

Technical Indicators With Bullish Outlook

Meanwhile, technical analysts are also projecting a bullish outlook for XRP. Dark Defender, a prominent market observer, highlighted that the token has broken through key resistance levels and is showing strong signals across key technical metrics.

The analyst pointed out a Golden Cross on XRP’s weekly RSI, which remains above the 50% threshold. This pattern is traditionally seen as a positive signal for continued upward momentum.

Dark Defender suggested that if XRP clears its immediate resistance at $0.6649, it could set the stage for a rally toward the $1 mark.

XRP Performance Amid Election Cycle Trends

In addition, crypto analyst Mikybull Crypto shared an optimistic outlook for XRP, pointing to historical trends. Mikybull noted that XRP has often rallied following U.S. election cycles. Based on these patterns, the analyst projected a promising future for XRP.

Amid XRP’s latest comeback, market experts are warning that XRP could soon break the dollar mark, predicting an aggressive pump into the double-digit range.

XRP has finally awakened from its slumber to join the bull market frenzy, breaking multi-month highs after previously underperforming and frustrating holders.

On Tuesday, XRP surged by an impressive 23%, rising from $0.5991 to as high as $0.7354—a price level last seen eight months ago in April. This remarkable turnaround coincided with Bitcoin’s attempt to break into the $90K price range on Tuesday.

While XRP capitalized on Bitcoin’s uptrend following months of anticipation, excitement has swept the XRP community. Now, market commentators are growing more confident that the elusive $1 price is within reach.

Last Chance to Buy XRP Under $1

As a result, analysts are issuing bold warnings to the crypto community that now may be the last chance to buy XRP cheaply under $1. Commentators like Edo Farina have asserted that the long-awaited $1 price level could be recaptured as early as Friday—just two days away.

$1 $XRP by Friday

👀

— EDO FARINA 🅧 XRP (@edward_farina) November 12, 2024

Notably, since XRP broke into the $0.70 range, it has retraced to $0.6542 at the time of writing. From this point, reaching $1 would require XRP to rally by 53% in the coming days.

Meanwhile, analysts believe the $1 level will serve as a springboard for a sharp price pump.

XRP Price After $1 Breakout

Crypto educator Ralston Maximus suggests that the longer-term trendline for XRP points to the $1.09 to $1.10 range. He emphasized that once XRP surpasses the $0.75 resistance level, the next major challenge will be breaking through the $1.10 zone.

Maximus also pointed out that, regardless of short-term fluctuations, XRP has successfully broken out of its prolonged downtrend. Accordingly, he identified the $6.5 to $7 range as a potential target for the “smaller” move.

Looking further ahead, Maximus speculated that XRP could reach the $30-$35 range in the “bigger picture.” 

Crypto commentator Armando Pantoja shared a similar outlook in a separate analysis. He highlighted the symmetrical triangle pattern, MACD indicators, and increasing volume as key factors supporting a potential breakout for XRP.

Pantoja noted that a similar alignment of indicators played out previously, which led to XRP pumping from just a few cents to over $3. Accordingly, he suggested that after XRP surpasses the $1 mark, its price target could range between $8 and $30.