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XRP has started May with a choppy price action between the lower and upper ends of $2.195 and $2.25, respectively, in the past three days. Although XRP has spent the majority of the past two months correcting from the peak price of $3.3 in January, its 2-month candlestick is showing a strong green body, a sign that bulls are still in control in the higher timeframes despite the fluctuations on the lower timeframes.
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Interestingly, a precise signal that hasn’t appeared since XRP’s historic 2017 rally is back, and the same trigger that led to its 20x price explosion that year has just returned.
Technical Pattern Shows Clear Breakout Structure On 2-Month Timeframe
Technical analysis of XRP’s price action on the 2-month candlestick timeframe chart shows that the cryptocurrency is still trading in a bullish setup on a larger timeframe. This analysis, shared by crypto analyst JD on social media platform X, shows XRP breaking out from a long-term triangle pattern, which has held its price in consolidation since the 2018 peak.
The structure formed by this triangle includes a flat resistance trendline at the top and a gradually rising trendline at the bottom. XRP’s price performance in late 2024 saw it break above the upper resistance trendline, much like it did in a similar setup in the first few months of 2017.
Notably, the XRP price broke above this trendline with conviction, which allowed it to reach a multi-year high of $3.3. However, the ensuing price action has been corrections upon corrections, with XRP now trading close to the $2 price level.
Notwithstanding, the appearance of a bullish cross on the RSI means a bullish setup is still in action, with crypto analyst JD highlighting a potential 20x surge.
Stochastic RSI Cross Above 80: The Same Spark From 2017
The appearance of a cross on the Stochastic RSI above the 80 level makes the current bullish setup more convincing. JD pointed out that the last time this crossover happened was in 2017, right before XRP recorded a 20x gain within three months.
His chart illustrates this visually, showing a yellow highlight at the intersection point of the SRSI lines during that historic breakout. The same cross has now been confirmed on the 2-month chart.
The SRSI cross occurs when the %K line crosses above or below the %D line within the Stochastic RSI indicator. In the case of XRP, the bullish signal of the cross is examined above the 80 threshold on the 2-month chart. The last time this happened in 2017, XRP went on a rally over four months from around $0.15 until it reached its current all-time high of $3.40.
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If a similar scenario were to unfold, this would put the target around $45. This may seem unrealistic, considering the inflows needed to reach this level. Nonetheless, a rally from the recent SRSI cross could send the XRP price to new all-time highs.
At the time of writing, XRP is trading at $2.2.
Featured image from Unsplash, chart from TradingView