XRP Could Rocket 470% If History Repeats, SuperTrend Suggests
In a technical analysis shared on X, popular cryptocurrency analyst Ali Martinez (@ali_charts) drew attention to a potentially important bullish signal for XRP. Martinez highlighted that the SuperTrend indicator applied to the 12-hour chart of XRP/USDT has turned bullish – a pattern that was in place before the last time the price surged 470%.
“The last time the SuperTrend indicator turned bullish on the 12-hour chart, XRP was up 470%…it has turned bullish again,” Martinez wrote By X and shared the chart below.
What this means for XRP price
The SuperTrend indicator is a popular trend following technical analysis tool developed by Olivier Seban. It is overlaid on the price chart and dynamically adjusts based on volatility, helping traders identify current market trends. This indicator primarily uses average true range (ATR) to determine its position relative to price movements, providing clear buy and sell signals.
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SuperTrend is calculated using ATR and a multiplier (usually set to 3). It draws a line above or below the price and switches its position when the price crosses these levels. A bullish reversal occurs when the indicator moves below price, indicating an underlying uptrend. Conversely, a bearish reversal occurs when the price is above the price, indicating a possible downtrend.
Martinez mentioned a final example where the SuperTrend indicator on the 12-hour chart of XRP turned bullish, subsequently causing the price to rise by an astonishing 470%. The last bullish move occurred in November last year, when XRP was trading around $0.50. After the flip, XRP entered a strong uptrend, breaking through key resistance levels and peaking at $2.90 on December 3, a 470% increase from its pre-flip valuation.
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According to Martinez, the Supertrend indicator on the 12-hour chart has turned bullish again. This resurgence suggests that previous explosive upward moves may be repeated. Notably, the bullish supertrend coincides with the bullish chart setup on the weekly chart.
Last week, XRP rebounded from the key support level of $1.96 and is now targeting a weekly close above the 1.272 Fibonacci extension of $2.42. A decisive break above this resistance, coupled with sustained volume, could push the price towards the 1.618 Fibonacci extension level at $3.00.
Based on historical precedent, price targets may be higher if XRP mirrors previous patterns. The 470% upside target price level is around $13.80.
At press time, XRP was trading at $2.44.
Featured image created using DALL.E, chart from TradingView.com
