A lone green candle on XRP’s three-week chart is catching the attention of at least one analyst who thinks it could be the beginning of something bigger than a routine bounce.
CW cryptocurrency analyst, posting on X, noticed a bullish candlestick pattern on the XRP/USD 3W chart, which he believes signals the opening of a full-scale uptrend. One that, if his cycle analysis proves correct, with a setup pointing first to a retest of the all-time high zone and then, in an extreme scenario, to $21.50.
A up-to-date uptrend is starting on the 3-week chart
Technical analysis of XRP price action on the 3-week candlestick chart reveals an intriguing signal. The signal itself is basic: a green candle has been printed on the three-week XRP chart at the moment when the price the price is just above $1.38.
Analysis comes from cryptocurrency analyst CW, and according to this projection, this may be the first bullish wick that shows sellers losing control in this higher time horizon.
It is crucial to note that the rally has not yet begun and XRP is still trying to solidify a break above $1.4. Moreover, the indicators are yet to print full uptrend signals, but according to the analyst, these bullish reversal signals will appear soon.
These partial indicators are visually consistent with the momentum oscillator moving between the oversold and overbought extremes, as shown in the chart below. They printed blue dots at every significant XRP low since 2014, including the floors preceding the 2017 and 2021 highs. New blue dot it seems to be forming now.
A multi-phase cycle that brings the XRP price to $21.50
The chart attached to the analysis shows two cycle structures divided into four separate phases. In the first cycle, phase 1 was an initial margin, phase 2 was a massive correction, phase 3 was an extended descending consolidation within a symmetrical triangle, and phase 4 was a breakout.
Technical analysis assumes that the current cycle follows almost exactly the same sequence. Phase 2 was printed as a post-2021 bear market, Phase 3 as a 2022-2024 multi-year compression, and a rise to $3.65 as the first part of Phase 4 in the up-to-date cycle.
From this reading, it appears that XRP is still playing out Phase 4, moving into a move that is surpassing everything that has come before, even though it is down approximately 62% from its all-time high price. Interestingly, the chart also identifies the first growth target as a return to an all-time high.
So before we start talking about double-digit prices, XRP he would have to recover first zone around the previous record of $3.65. The last CW screening this is the bike peak at USD 21.5, which ties to the Fibonacci extension level of 6.618. This level is marked on the chart as TP2, and the all-time high zone is TP1.
Featured image from Adobe Stock, chart from Tradingview.com
