XRP could be heading for a major long-term breakout according to a recent analysis, which sees a symmetrical triangle formation potentially sending the token toward $50 and a roughly $3 trillion market capitalization.
Namely, crypto analyst Gert Van Lagen shared a monthly chart pattern showing XRP trading around $1.5 with the area around $1.5-$2 as an important technical zone and a rising trendline providing additional support underneath the recent price action.
The analyst’s projected target of approximately $50 would represent a move of more than 3,200% from the $1.5 level shown on the chart, or roughly 33 times the current price.
“Symmetrical triangle targeting ±$50 at a $3T market cap. This would be normal bull market dynamics for Ripple,” van Lagen wrote.
XRP’s current consolidation might be the final stage before a major rally
Van Lagen’s chart stretches back to XRP’s early trading history and highlights several major resistance and support areas. Notably, the latest structure shows XRP repeatedly interacting with a long-term horizontal resistance zone around $2.1, while a rising diagonal trendline has developed underneath the price.
The chart also projects a potential breakout above the $2.1 resistance area, followed by a steep acceleration higher. Looking at the data, the projection extends toward the $45-50 region, implying that van Lagen views the current consolidation as potentially the final stage before a much larger move.
As mentioned, the setup is based on a symmetrical triangle, a technical formation created by converging trendlines and generally interpreted as a period of compression before a significant move. While the pattern itself does not guarantee an upside breakout, the interpretation in question assumes XRP eventually resolves the structure to the upside.
With XRP at $50, Bitcoin could reach $450,000
The analyst is also connecting the potential move to XRP’s historical performance against Bitcoin (BTC). Specifically, his argument is that a repeat of XRP’s explosive 2017 move relative to BTC, combined with a Bitcoin price of around $450,000, could accompany an XRP price near $50.
“In 2017 it took only 2 months for XRP/BTC to 50X from current level to 0.00011, which would imply BTC at $450k and XRP at $50,” he added.
Of course, both price targets remain highly speculative and would require both a dramatic expansion in the crypto market and XRP’s market share. Still, the forecast comes as XRP’s long-term outlook continues to attract attention, even as the current near-term setup remains somewhat bearish.
Indeed, XRP is facing some pressure now that Bitcoin has rejected the $87,200-$87,400 resistance zone for the third time since late September, triggering a broader liquidity flush.
At the same time, XRP is dealing with significant overhead supply. That is, while there was no major negative catalyst specific to the token, recent positive developments have failed to generate a meaningful buying response. Most notably, the Ripple-backed Evernorth NASDAQ debut was delayed to October 12, while veteran trader Peter Brandt recently pointed to a “ton of overhead supply” around XRP.
Featured image via Shutterstock
