Technical Pattern Suggests XRP’s Price Will Surge to $4

A popular cryptocurrency analyst has posited that the native token of the XRP Ledger could see a dramatic price surge to a new all-time high of $4 over a key technical pattern that suggests a breakout could be coming after a brief correction.

In a post shared on X, popular cryptocurrency analyst Ali Martinez noted that on XRP’s four-hour price chart a bull flag has formed at a time in which the chart’s TD Sequential indicator started flashing a sell signal as well.

The TD Sequential indicator was developed by Tom Demark, and is  used to identify the exact time of trend exhaustion and potential points of reversal. It involves counting a series of price bars and comparing them to previous price bars to find exhaustion points.

 A buy signal in the TD Sequential indicator appears when the series indicates that the downtrend is likely exhausted and a reversal to an uptrend is probable. This typically happens after a countdown of 9 bars, where each bar closes lower than the bar four periods earlier.

A bull flag, on the other hand’s a chart pattern formed by a flagpole, in which an asset’s price makes a strong upward move, and a flag in which the price starts dropping slowly, as if to form a flag waiving in the wind. If the pattern holds, the asset’s price eventually breaks out of the formation to keep on rising.

As reported, a ttle-watched indicator is flashing a bullish signal for two major cryptocurrencies, leading meme-inspired token Dogecoin (DOGE) and the native token of the XRP Ledger, suggesting they may be poised for a price surge in the near future.

The metric Mean Dollar Invested Age, tracked by on-chain analytics firm Santiment, measures the average age of every dollar invested in a cryptocurrency. According to the firm, in a post on the microblogging platform X (formerly known as Twitter), the metric shows several cryptocurrencies including Bitcoin, XRP, and DOGE are seeing their Mean Dollar Invested Age line move down.

A downward movement in the metric “indicates that older, stagnant wallets (particularly from large key stakeholders) are circulating their dormant coins back into circulation, increasing network activity.” The indicator uses on-chain data to track when a coin was last moved on a network and, per Santiment, is one of the “key indicators throughout the history of each coin’s lifespan that helps validate that a bull market can and should continue.”

The indicator was accurate in the 2017 and 2021 bull markets, the firm added, noting that these came to a halt only after assets’ mean ages started rising again. 

Featured image via Pixabay.