At the moment, the crypto-market as a whole is in an unusual position. With cryptocurrencies like Ethereum and Cardano, Bitcoin shows a high de-correlation. And, while most people’s long-term bullish structures are still intact, there appears to be panic in the wake of Bitcoin’s recent drop to $60,380.
However, the trend for XRP appears to be pointing to an exciting couple of weeks ahead. Particularly given the possibility of a new all-time high.
XRP traded and closed above the inverse head-and-shoulders triangle’s neckline. Second, a bullish catapult has formed, pointing to the $1.50 value area as the pattern’s forecasted profit goal.
Within a week, XRP had risen above $1.10. Within three days, the daily candle closed above the Exponential Moving Average-20, or EMA-20, signalling strong bullish momentum.
The weekly chart for XRP now maps out precisely in light of the aforementioned structure.
XRP Price to New ATH?
The path of a trend is usually determined by fractal shapes over a longer duration, and XRP’s recent patterns have been enticing. In Q1 2021 and Q4 2021, the weekly chart for XRP showed a similar local top, local bottom, and positive symmetrical triangle breakout, as shown above.
The explosive returns were the only section of the continuation chart that was missing. In April 2021, these pushed XRP to $2. A similar scenario would easily propel XRP beyond $3, with a potential high of $4 in the coming weeks.
However, to look at the downside, there has been a lack of social volumes. XRP received a lot of attention in the first quarter of 2021. However, the same isn’t readily apparent at the moment.
As shown in the graph below, social volumes haven’t been particularly high. This could suggest a lack of retail interest or public enthusiasm in general.
On-chain activity, on the other hand, is nothing to be concerned about. A week ago, a big bullish divergence was seen between rising active addresses and falling prices. The recent price increase is now being seen as a fundamental driver.
Increased daily active addresses indicate increased participation. This implies that XRP is attracting the attention of its users.