A single green candle on XRP’s three-week chart is catching the attention of at least one analyst who believes it could the beginning of something bigger than a normal shot.
Crypto analyst CW, who posted on X, noted the formation of high candlesticks on the XRP / USD 3W chart, which, according to him, indicates the opening of a large-scale trend. One, if his cyclical analysis is correct, with the setup pointing first to a retest of the high zone and then in an extreme scenario to $21.5.
A new trend begins on the 3-week chart
Technical analysis of XRP price action on the 3-week candlestick chart reveals an interesting signal. The signal itself is simple: a green candlestick was printed on the three-week XRP chart at a time when the price is sitting just above $1.38.
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Analysis coming from CW crypto analyst, and according to this forecast, this could be the first tasty wick indicating that the sellers are losing control at this higher time frame.
It is important to note that the rally has not yet started and XRP is still trying to break above $1.4. Also, the indicators are not yet printing bullish signals, but according to the analyst, these upside reversal signals will appear soon.
These sub-indicators are visually consistent with the swing of the oscillator’s momentum between the oversold and overbought extremes shown in the chart below. They have printed blue dots at every significant XRP low since 2014, including the floors that preceded the 2017 and 2021 rallies. New blue dot seems to be forming now.
A multi-phase cycle that sends the price of XRP to $21.5
The diagram attached to the analysis shows two cycle structures divided into four distinct phases. In the first period, Phase 1 was the initial breakout, Phase 2 was a massive correction, Phase 3 was a long-term downward consolidation within a symmetrical triangle, and Phase 4 was a breakout.
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Technical analysis puts the current cycle as almost exactly following the same sequence. Phase 2 is labeled as a decline in the bear market after 2021, Phase 3 as a multi-year squeeze between 2022 and 2024, and a rise to $3.65 as the first part of Phase 4 in the new cycle.
Now, with this reading, XRP is still in phase 4 of a move that bests everything that came before it, even though it’s down about 62% from its all-time high. Interestingly, the chart also shows the first upside target as a return to this high.
Therefore, before any talk about double prices, XRP you will need to withdraw first area around its previous record of $3.65. The CW’s ultimate vision there is an up cycle $21.5 which is related to the Fibonacci extension level of 6.618. This level is marked on the diagram as TP2 and the highest zone serves as TP1.
Featured image from Adobe Stock, chart from Tradingview.com
