Popular crypto analyst JD, known for predicting XRP's bottom at the $0.28 price level, has warned of a batch of 'dumb money' traders missing on the next XRP price surge. According to JD, this set of traders may overlook the opportunity to get on before the next price surge, drawing parallels to past XRP price action.
Analyst JD Draws Parallels To Past XRP Trends
Despite the volatile nature of the crypto market, most cryptocurrencies are known to repeat or mirror past phenomena in their price action. As a result, it is very common for crypto analysts to look at the past and assess current trends when trying to predict the future movement of cryptocurrencies.
The expert compared the present price pattern to 2017, which was the year that XRP finally broke its boring price action that lasted from 2013 to 2017. A look through this cycle shows XRP underperforming when compared to other cryptocurrencies. As a result, the 'dumb money' traders complained and bolted, causing them to miss the astounding gain that came after.
However, XRP would then go on a 600x price gain after breaking out of the 4-year consolidation trendline. As a result, the crypto reached as high as $3.84 in January 2018, its current all-time high.
XRP has had its ups and downs this year stemming from different updates within the Ripple ecosystem. The crypto went on a price surge in the middle of the year, reaching a yearly high of $0.82 in July. XRP has traded below this price point since then, despite most cryptocurrencies registering new yearly highs in the last quarter of the year.
JD noted that XRP's price action is currently mimicking the point at which it broke out of the consolidation in 2017, warning of 'dumb money' traders who might miss out on the next potential price surge.
Token price sitting at $0.64 Source: XRPUSD On Tradingview.com
XRP Price Target
XRP has grown massively since its 2017 days and now has a market cap of over $34 billion. When asked about a potential price target, JD noted that the repeat of a 600x in the case of a breakout would be unrealistic at this point. An 8-10x surge is more likely according to the current technicals. With XRP currently trading at $0.639, a 10x price surge would make a price target just over $6.
In another chart shared by the analyst, he noted that XRP's price is currently forming a cup and handle formation in the 2-day timeframe. If this formation holds, a bullish breakout would see XRP reaching a $0.95 price target.
Featured image from The Bitcoin News, chart from Tradingview.com
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Source: NewsBTC.com
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