Crypto analyst JD, known on X as @jaydee_757, has highlighted several technical signals on XRP’s long-term market cap chart that suggest a significant move may be imminent for the cryptocurrency. Analyzing data spanning nearly a decade, JD has identified three converging indicators pointing to a possible breakout for the digital asset developed by Ripple Labs, a US-based technology company focused on digital payments.
Key technical signals align for XRP
One of the primary signals JD notes is a multi-year breakout retest. XRP’s market cap previously broke above a major ascending support line that has been in place since 2017. This breakout followed a surge of over 500% between late 2024 and early 2025. Since then, the asset has spent more than a year correcting those gains.
Current price action is testing this breakout level, which ranges between $65 billion and $85 billion in market capitalization. JD suggests that successfully holding above this level would confirm the validity of the breakout and potentially pave the way for higher valuations.
The second technical signal is the potential formation of a bullish engulfing candle on the two-month chart. This pattern, which occurs when a green candle fully absorbs the previous red candle’s body, signals a possible bullish reversal on a macro timescale if confirmed with a green close.
The third indicator is a hidden bullish divergence. While XRP’s price continues to form lower lows, the Relative Strength Index (RSI) has produced higher lows and now reads 53.43. This divergence typically supports trend continuation to the upside.
Mini dictionary: Bullish engulfing candle – A chart pattern where a larger green (bullish) candlestick completely covers the previous red (bearish) candlestick’s body, often seen as a reversal signal in technical analysis.
JD emphasizes that XRP is currently retesting a major breakout after a multi-year consolidation, while a potential bullish engulfing pattern and hidden bullish divergence could drive a substantial rally if the support level holds.
Market outlook and potential price targets
JD’s analysis projects a sharp move to the upside if market cap support is maintained. On his chart, a cyan arrow marks a possible trajectory for XRP’s next leg up, potentially surpassing levels observed at previous cycle peaks, which ranged from $180 billion to $240 billion in market capitalization.
While JD has not provided a specific target for the next market cycle, he notes that a move to the $540 billion market cap area – the highest level illustrated on his chart – could translate to an XRP price around $9.
Risks for retail investors
JD concludes his analysis by cautioning investors to be mindful of profit-taking opportunities. He references a common saying among the XRP community – “Know what you HOLD” – and warns that conviction alone may not protect holders from steep declines after a peak.
Previously, JD has asserted that 95% of XRP investors may ultimately lose profits during the next cycle. He expects that most retail holders will resist selling at cycle highs, instead holding through the drawdown and serving as exit liquidity for timely sellers.
JD warns that, after the anticipated massive rally, a subsequent 95% crash is likely, and those who hold through the high may miss the chance to realize profits on time.
Mini dictionary: Exit liquidity – In trading, this refers to late buyers who enable others to sell at high prices before a major decline.
As with any market forecast, JD advises investors to conduct careful research and consider their risk tolerance before making trading decisions on XRP or any cryptocurrency.
