Ripples (XRP) have stirred excitement in the crypto market with a recent buy signal. The technical indicator, identified by analyst Tony Severino of CoinChartist, suggests a potential price surge for XRP.
The signal stems from the daily Bollinger Bands, a volatility indicator. XRP dipped below the lower Bollinger Band during the July market correction triggered by the German government’s Bitcoin sales. However, following the sell-off, XRP displayed a bullish resurgence, coinciding with the anniversary of the Ripple v. SEC case ruling that classified XRP as a non-security. The token price jumped 40%, reaching a high of $0.5661 on July 13th.
While a slight correction followed, XRP has remained above $0.52. Severino emphasizes that a close above the upper Bollinger Band ($0.5293) could be the catalyst for a significant price increase. However, sustaining this momentum hinges on high trading volume, indicating continued investor interest.
XRP’s Short-Term Outlook: Consolidation or Breakout?
Despite a 46% drop in trading volume over the past 24 hours, daily active addresses for coin have shown an increase according to Santiment data. This suggests potential underlying buying pressure despite the current lull.
Analyst Javon Marks offers a more ambitious prediction for XRP. He identifies a symmetrical triangle pattern on the 18-day chart, potentially mirroring the token’s 2017 upsurge. Marks’ bullish outlook envisions a breakout from this pattern, with a price target of $150 – a staggering 300x increase.
Also Read: XRP Soars 26% in a Week: Bullish Bollinger Bands Signal Potential Breakout, Analyst Eyes $150 Target
Technical factors supporting XRP’s bullish potential include:
- A 26% price surge over the past week.
- An RSI (Relative Strength Index) of 65, indicating room for further growth.
- A MACD line consistently above the signal line, suggesting sustained bullish momentum.
The Road Ahead for XRP
As XRP consolidates, the market awaits its next move. The Bollinger Band buy signal, rising daily active addresses, and historical chart patterns hint at a potential breakout. With renewed buying pressure and increased volume, coin could be poised for a significant rally. Traders and analysts are closely monitoring the situation, anticipating what could be a monumental surge for XRP.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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