In a technical analysis shared on X, the popular crypto analyst Ali Martinez (@ali_charts) has drawn attention to a potentially important bullish signal for XRP. Martinez pointed out that the SuperTrend indicator, inserted into the 12-hour chart of XRP / USDT, has moved in a bullish direction – a pattern that preceded the meteoric price increase of 470% last time.
“The last time the SuperTrend indicator turned bullish on the 12-hour chart, XRP was up 470%… write via X and shared the album below.
What this means for the price of XRP
The SuperTrend indicator is a popular trend following technical analysis tool developed by Olivier Seban. It crosses price charts and helps traders identify the normal movement in the market by changing dynamically based on volatility. The indicator primarily uses the Average True Range (ATR) to determine its position relative to price movements, providing clear buy and sell signals.
Related Reading
The SuperTrend is calculated using the ATR and a multiplier (usually set to 3). He plots a line above or below the price, changing his position when the price crosses these levels. A bullish flip occurs when the indicator moves below the price, indicating a possible upside. On the other hand, a bearish flip occurs when it moves above the price, indicating a possible decline.
Martinez mentioned the last situation where the SuperTrend indicator turned bullish on XRP's 12-hour chart, which led to an incredible price increase of 470%. The last bullish flip happened last November, where XRP was trading at around $0.50. After the flip, XRP entered a strong rise, breaking through key resistance levels and reaching a peak of $2.90 on December 3, representing a 470% gain from its pre-flip valuation.
Related Reading
According to Martinez, the SuperTrend indicator on the 12-hour chart has again moved bullish. This recovery suggests that the previous explosive trend could be repeated. Specifically, the bullish SuperTrend aligns with a bullish chart position in the weekly chart.
Last week, XRP broke off the critical support at $1.96, and is now looking to close weekly above the 1.272 Fibonacci extension level at $2.42. A definite break above this resistance, along with sustained volume, could move the price towards the 1.618 Fibonacci extension level at $3.00.
Based on the historical forecast, if XRP mirrors the previous pattern, the price target could be much higher. A 470% increase would target a price level around $13.80.
At press time, XRP was trading at $2.44.
Featured image created by DALL.E, a chart from TradingView.com
