An analyst has stated that the XRP/BTC chart suggests Ripple’s token is headed for its biggest breakout in history. The analyst opined that there was a hidden bullish divergence in the chart, whose play-out could trigger these gains. This forecast comes amid a bearish outlook on XRP price following a 27% drop in the last 30 days.
XRP/BTC Ratio Hints at Breakout Rally
In his forecast, analyst JD stated that XRP/BTC has been trading within a falling wedge pattern for more than seven years. When this pattern occurs, it usually hints that the price of an asset is about to make a bullish breakout to the upside if the upper trendline breaks.
Per the analyst, a bullish divergence with the RSI could trigger this rally after the indicator tipped upwards despite the ongoing decline in price. This suggests that buyers might be positioning for an upside.
“I expect a hidden bullish divergence to play out & possibly breakout from a 7-year trendline. This would be the biggest breakout in XRP history & majority will still be exit liquidity in the end REKT,” the analyst stated.
For this bullish outlook to happen, the ratio needs to break above the upper trendline of the falling wedge channel. As seen in the chart below, the ratio is tipping upwards and is nearing this inflection point, after which a rally may occur.
This bullish thesis mirrors another forecast saying that XRP may reach $7. As ZyCrypto reported, a market pundit said XRP could reach this price if Bitcoin’s market cap surges above $7.3 trillion.
Double Bottom Pattern Signals $18 is Next
Another popular analyst on X, dubbed Dark Defender, has also shared an ultra-bullish outlook on XRP, predicting that it could reach $18. He based this bullish thesis on the formation of a double-bottom pattern on the one-month chart.
The analyst added that despite the recent bearish correction, XRP has remained within an ascending channel since 2017. If the price can defend the lower trendline of this channel and break above the upper trendline, he stated that the price might reach $18.
At press time, XRP was trading at $1.35, down 1.92% intraday. However, trading volumes fell to $3.4 billion over 24 hours.
