XRP MACD Gives Bullish Signal — Can History Repeat with 150% Price Surge Against Bitcoin?
Will XRP History Repeat? | Credit: Getty Images
Key Takeaways
- The weekly time frame MACD for XRP is in the process of making a bullish cross.
- Such crosses previously led to retests of a long-term descending resistance trend line.
- Can the XRP price initiate a similar upward movement in the months to come?
The XRP price has been in a massive downtrend against Bitcoin since the end of 2020. It has fallen over 80% under a descending resistance trend line. During this time, there have been three distinct upward movements, which in the end proved unsuccessful.
This week, the MACD indicator flashed the same signal that preceded those increases. While history doesn’t repeat itself, it often echoes familiar patterns. Could XRP be gearing up for a similar upward movement?
What is XRP’s Bullish Signal?
When comparing it against BTC, the XRP price has decreased under a descending resistance trendline since November 2020. The price fell to a four-year low of 691 satoshis in April.
While the trendline has caused four rejections so far (red icons), there is an interesting bullish signal that previously led to a rest of the resistance trendline.
The signal is created with a bullish cross in the weekly MACD (white). It has occurred three times since 2020, and the XRP price reached the trend line each time after the signal was created.
This week, the MACD is in the process of creating a bullish cross (green circle).
However, the signal is not identical to the previous ones because of the different RSI reading. In all three previous cases, the RSI moved above 50 at the time of the bullish cross. This week, the RSI is attempting to move above 30, which is a bullish signal in itself since the indicator is moving outside of its oversold territory.
If a similar increase happen, XRP can reach the resistance trend line at 2,000 satoshis, an upward movement of 150%.
XRP Price Prediction: Short-Term Readings Support the Bounce
The daily time frame readings align with the weekly ones, supporting the possibility of an upward movement. This is because of both the price action and indicator readings.
The price action shows that XRP has broken out from a descending resistance trend line existing for 285 days. Such breakouts often lead to notable upward movements. Coincidentally, the trend line was created after the final bullish MACD signal.
Both the daily MACD and RSI have generated considerable bullish divergences over a two-month period. These divergences often lead to bullish trend reversals and likely catalyzed the breakout. So, they support the possibility given by the weekly time frame in which XRP will increase toward its long-term resistance.
The first intermediate resistance area is at 1,570 satoshis, created by a horizontal resistance and the 0.382 Fibonacci retracement resistance level.
History May Repeat
To conclude, the weekly time frame readings have given a bullish signal that previously led to a retest of XRP’s long-term resistance. Short-term readings align with this possibility. If history repeats, XRP can increase by 150% against Bitcoin.
