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The possibility of a historic breakout in XRP’s price has caught the attention of the trading community. Presently, there is an ongoing discussion surrounding the reemergence of a Stochastic RSI crossover on the monthly charts, reminiscent of the one preceding the parabolic rise of 2017. This crossover notably propelled XRP’s price twentyfold within a few weeks that year, only to be followed by a sharp 96% correction. An expert analyst, Jaydee, emphasized the market’s critical juncture, stating, “The savvy few will recognize the exit strategy before the rally gains momentum, while the majority remain destined to fade alongside the peak’s allure.”
Historical Rally Signals Reappear in XRP
Jaydee’s recent analysis reveals a striking resemblance to the pre-rally scenario of 2017 as the Stochastic RSI values begin to move upwards from the lower band. During that period, XRP surged from $0.006 to $3.30, fueling high-risk appetites, followed by a wave of selling that pushed prices down to penny levels, leaving inexperienced investors startled.
With indicators now at a sensitive threshold, Jaydee has issued a cautionary note, warning that large leveraged positions, opened without confirmation, may face being trapped due to insufficient trading volumes. Furthermore, should the crossover be confirmed, it is expected that FOMO (Fear of Missing Out) will dramatically amplify liquidity, accelerating the rise in a domino effect.
Historical data highlights not just price patterns but also investor psychology. In 2017, as prices approached their peak, large-scale holders reduced their positions, while retail investors, drawn by media headlines, bought at the pinnacle. The analyst indicated seeing the initial signs of a similar pattern through on-chain flows, referring to his chart’s “pink box” indicating where a potential value surge may conclude, leading to a dramatic 90% retracement.
Details of the Potential 90% Drop Risk for XRP Coin
Jaydee identified three key indicators supporting the potential for a significant downturn. First is a statistical model showing XRP’s historical depreciation of 88% to 96% post-peak cycles, suggesting a customary retreat. Second, liquidity maps from major exchanges highlight thinning, seller-focused order books, which could intensify price declines in waning upward momentum. Lastly, macroeconomic indicators sensitive to Federal Reserve policies, such as the Dollar Index and long-term bond yields, exhibit an inverse correlation to XRP price, suggesting that continued monetary tightening might curtail the rally.
Central to this scenario is the monthly Stochastic RSI crossover, with the signal line merely decimal points away from breaking upwards. A full confirmation requires at least one candlestick closure, indicating a critical four-week period lies ahead.
The analyst underscored the need to verify whether transaction volume and open position data support the crossover. Without this confirmation, opening aggressive long positions increases the risk of a “bear trap.” Therefore, balancing high profit-seeking with disciplined strategies and pre-planned exits is essential to mitigate losses in the event of a possible XRP crash.
