XRP’s current price of $0.60 against Bitcoin might seem low, but key technical indicators suggest that a major bullish run could be coming soon. Analyst Tony Severino, founder of CoinChartist, believes that the current alignment of XRP’s metrics is historically a strong sign of a future bull run.
Here’s what there is to know.
Bollinger Bands, a tool used to measure market volatility, are tightening for XRP on a monthly timeframe. This narrowing usually signals that a significant price movement is on the way. In the past, when Bollinger Bands have tightened for XRP, it has led to substantial price rallies.
Bollinger Bands consist of a middle band (a moving average) and two outer bands that adjust based on price volatility. When these bands converge, it indicates lower volatility, often followed by higher volatility. Severino notes that XRP’s current Bollinger Bands are tighter than before its impressive 60,000% rally that ended in 2018.
Tight Bollinger Bands have often predicted large price changes. For example, Bitcoin experienced a similar pattern last August, leading to an 187% price spike. Analysts are now forecasting another significant price jump for XRP based on this trend.
At the moment, XRP is trading at $0.5988, making it the sixth-largest cryptocurrency by market cap. It recently saw a 1.5% drop, reflecting broader market trends where Bitcoin is down over 4%. Despite this decline, the tight Bollinger Bands suggest that substantial price changes could be coming soon.
A Look at the Market Impact
XRP’s price is also affected by the ongoing SEC v. Ripple lawsuit. Ripple CEO Brad Garlinghouse has hinted at a possible resolution, though details are still unclear. This legal uncertainty adds to the volatility of XRP’s price.
Currently, XRP is 82% below its peak from 2018, making it one of the worst-performing cryptocurrencies. However, the tight Bollinger Bands and the potential for a resolution in the SEC case are creating anticipation for a possible breakout. Investors should stay cautious and keep up with crypto developments.
Joining the debate, Crypto analyst Harry, Known as HaraldoXRP in X notes that XRP’s monthly Relative Strength Index (RSI) is about to break a downtrend that has persisted since late 2017, following XRP’s all-time high of $3.30 in January 2018.
Historically, XRP has seen significant rallies after Bitcoin halving events. For instance, after the May 2016 halving, XRP surged to $0.31 in January 2018. After the April 2020 halving, it reached $1.96 a year later. With the latest Bitcoin halving in April 2024, analysts expect a similar upward trend for XRP, especially with the upcoming RSI breakout.
The XRP rally is imminent, or is it? Only time will tell. Share your insights and let’s discuss.
Also Read: Top 5 Cryptocurrencies Regain Momentum As Bitcoin Hits $68K, What’s Next?
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