XRP recently retested a multi-year ascending trendline that has persisted for nearly ten years, with analyst JD calling attention to massive 39x and 650x spikes following previous retests.
JD highlighted this setup in a post detailing XRP’s price movements amid the current bearish phase. Notably, XRP is down over 18% this year, with its biggest losses coming up in January. The bearishness has spilled into this month, as the crypto asset currently faces a meager 0.08% drop in February.
XRP gave up the crucial $0.51 support level when it collapsed 2.97% on Feb. 4. The asset sought to recover the price territory yesterday, but its 0.74% intraday increase was not sufficient enough for this feat. XRP closed Feb. 5 below the $0.51 threshold.
Now, the cryptocurrency has failed to reclaim the pivotal price point. However, amid the bearishness, XRP could be setting the stage for a price rally, per JD’s disclosure.
The analyst identified a trendline on the monthly XRP market cap chart that has persistently served as support for XRP.
XRP Retests 10-Year Trendline
The trendline, which has defined XRP’s bottom price since 2014, is an ascending one, suggesting that the token continues to record higher lows over the last ten years. Nonetheless, XRP often retests the support at the trendline when it witnesses a massive downtrend.
#XRP – Last two times we tested the 10-year trendline, $XRP 39x – 650x in price w/in a year! We are now testing multi-year trendline!
Can we bounce off trendline to finally break structure?! Do NOT “KNOW WHAT YOU HOLD”, 🤦♂️🤣we taking “calculated profits!”
RT/Like for updates!… pic.twitter.com/flIQcDh4Ls
— JD 🇵🇭 (@jaydee_757) February 3, 2024
While the support at the trendline has continued to hold, data indicates a more interesting pattern: whenever XRP retests the trendline’s support, it records a massive price run.
The asset first retested the trendline in July 2014, when its market cap dropped to a low of $21.95 million. XRP’s price surged rapidly afterward, leading to a market cap of $865.645 million in December 2014. This indicates a 3,843%, or 38.4x, increase in just five months.
XRP retested the trendline again in March 2017 following a persistent price decline that equally affected its market cap. Following the retest, the cryptocurrency surged by approximately 65,000% to an all-time high market cap of $128.398 billion in January 2018.
The latest bearish movements has resulted in a third retest of this trendline. While JD failed to make any price projections, he remains confident that XRP will record another explosive price surge following this retest. He further advocated for periodic profit-taking trades as the asset rises.
Analyst Debunks Claims Around XRP
Meanwhile, another top market analyst Dark Defender highlighted a similar ascending trendline in a recent analysis, but delved deep into certain claims about XRP he believes are false.
He first addressed concerns about XRP having a low use case, as its volume has continued to increase with every bull run. Notably, XRP had a volume of $5 billion when it clinched the ATH of $3.3 in 2017. However, its volume skyrocketed to $26.8 billion when it hit $1.9 in 2021.
The analyst then countered claims that XRP could not surge after the SEC lawsuit began, as the asset surged from $0.17 to $1.96 in April 2021. He also addressed growing concerns on the back of a partnership between Chainlink and SWIFT.
Notably, reports of this partnership have triggered speculation that XRP is not getting the necessary traction. Dark Defender says XRP has witnessed similar use cases for a long time.
Lastly, he debunked claims that Ripple could negatively impact XRP’s price with large dumps and sales to cover losses when their shares underperform. The analyst emphasized that Ripple does not control XRP’s price movements, as it is just one of multiple contributors on the XRPL.