XRP News Today: XRP Targets $17 After 20x Surge, 94% Crash Possible

XRP, the cryptocurrency, is poised for a significant bullish run, according to a recent technical analysis. The analysis suggests that XRP's price may be on the verge of one of its most explosive moves yet, followed by a historic crash. This analysis comes as XRP has recently reclaimed the $2.2 mark in the past 24 hours, with the next target being $2.3.

Crypto analyst JD, known on the social media platform X as @jaydee_757, has drawn parallels between the current price action of XRP and its market cycle from 2017 to 2018. During that period, XRP exhibited a hidden bullish divergence (HBD) on the Stochastic RSI indicator, which preceded a 20x surge. According to JD, XRP is currently repeating a similar structural formation, with a new hidden bullish divergence confirmed on the two-week timeframe.

On the two-week candlestick timeframe chart, XRP has broken out from a multi-year symmetrical triangle that dates back to its peak in 2018. This breakout, combined with the hidden bullish divergence, sets the stage for a significant price move. JD anticipates an immediate upside continuation once the current smaller triangle consolidation pattern resolves to the upside. This parabolic upside continuation is expected to push XRP toward levels last seen during its all-time high, with a target around $17.

However, JD's analysis includes a cautionary note. Similar to the 2017 rally, which ended in a dramatic 94% crash from $3.4 to the $0.2 range, the anticipated surge could lead to a similar fate. After the anticipated euphoric move upward, JD projects a sharp reversal toward a designated pink box area on the chart. This region, although not labeled with a specific price, lies well below current levels and may cause XRP to crash from double digits to below $1.

Unfortunately, the majority of traders and investors could get rekt if they chase XRP near the peak. This follows similar behavior in 2018, where the parabolic rally was followed by an equally violent sell-off that trapped many traders at the top. As of now, XRP continues to coil within its consolidation triangle, and the breakout direction will likely determine the short-term fate of the cryptocurrency. A convincing break above the $3 mark would be necessary to invalidate the resistance of the current smaller triangle consolidation pattern and confirm the start of a parabolic move. Until then, there’s still a possibility that XRP will be rejected again at the triangle’s upper trendline.