XRP (XRP) is back on the radar of traders, with a technical indicator flashing a potential buy signal. Market analyst Tony “The Bull” Severino, founder of CoinChartist, identified this signal on the daily Bollinger Bands chart. His analysis highlights that XRP fell sharply towards the lower Bollinger Band during the recent market correction, fueled in part by the German government’s Bitcoin sell-off.
XRP Bounces Back After German Sell-Off
Between July 4th and 8th, the broader crypto market experienced a downturn, with XRP dipping below the lower Bollinger Band on multiple occasions. However, the tide turned once Germany offloaded its Bitcoin holdings. Bullish sentiment returned, propelling XRP a staggering 40% – from a low of $0.4032 on July 8th to a high of $0.5661 on July 13th. This surge coincided with the anniversary of the Ripple v. SEC case ruling, which declared XRP a non-security.
Bollinger Bands Suggest Potential for Further Gains
Despite a slight correction, XRP has managed to hold above $0.52. Severino emphasizes that the current Bollinger Bands pattern presents a potential buy signal for XRP. A decisive close above the upper Bollinger Band ($0.5293) could be the catalyst for the next leg up. However, high trading volume is critical to sustain this movement, reflecting strong investor support.
Here’s the catch: XRP’s trading volume has dropped significantly in the past 24 hours, down to $1.47 billion, marking a 46% decline. This could indicate waning interest from buyers. However, a different metric, daily active addresses, paints a contrasting picture. Data from Santiment reveals an increase in daily active addresses, suggesting more users are interacting with the XRP network.
Ambitious Price Target: Repeating 2017 Glory?
While Severino adopts a cautious approach to price predictions, analyst Javon Marks takes a more optimistic stance. He identifies a symmetrical triangle pattern on the 18-day chart, a formation dating back to 2018. Marks believes XRP could break free from this pattern, potentially mirroring its 2017 surge and reaching a staggering $150 – a mind-blowing 300x increase.
XRP has seen a 26% gain over the past week. The Relative Strength Index (RSI) sits at 65, indicating there’s room for further growth before reaching overbought territory. Additionally, the bullish momentum seems to be holding, with the MACD line remaining above the signal line despite a consolidation phase.
As XRP consolidates, the market eagerly awaits its next move. The buy signal on the Bollinger Bands, rising daily active addresses, and historical patterns all point towards a potentially significant price movement in the near future. Traders and analysts alike are preparing for what could be a monumental rally for XRP, but whether it can overcome the hurdle of declining trading volume remains to be seen.
Also Read: Analyst Predicts XRP Could Skyrocket 27,600% To $150, Backed By Unique Indicators
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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