A closely followed crypto strategist believes payments altcoin XRP is primed to witness much higher prices after breaking out from a nearly seven-year holding pattern.
Analyst Ali Martinez tells his 96,200 followers on the social media platform X that he thinks XRP could print gains of at least 245% from current prices before the bull market cycle expires.
Relying on Fibonacci extension levels, which traders use to spot potential exit points, Martinez says XRP could climb a lot higher after shattering a diagonal resistance that has kept the market bearish since January 2018.
“To some, XRP looks overbought! To me, it looks undervalued after breaking out of this massive multi-year symmetrical triangle.
Conservative target = $8.40
Optimistic target = $48.12.”
Zooming in, the trader says XRP has been printing three consecutive bullish continuation patterns, indicating that the altcoin is flashing massive strength.
“XRP: three consecutive bull pennants! We should all be praying for a retest of $2.25 to buy the dip and target $4.40!”
At time of writing, XRP is trading for $2.25, down over 2% in the past day.
Martinez is also keeping an eye on the meme token Pepe (PEPE). According to the analyst, crypto whales accumulated massive PEPE stacks over the weekend.
“Whales increased their PEPE holdings by $1.14 billion [on December 8th]!”
At time of writing, PEPE is worth $0.0000263, up nearly 2% in the past day.
Turning to Ethereum (ETH), the trader thinks that the leading altcoin is poised to record new all-time highs as long as it stays above an immediate support level.
Martinez uses the In/Out of the Money Around Price (IOMAP) metric – which classifies crypto addresses as either profiting, breaking even, or losing money – to determine support and resistance levels for ETH.
“There is nothing preventing Ethereum ETH from reaching new all-time highs. The only modest resistance zone ahead is around $4,540. But as long as the $3,560 demand zone holds, the odds favor the bulls!”
At time of writing, ETH is trading at $3,753.
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