TL;DR
- Ripple’s XRP surged 25% in a week, briefly hitting a three-month high of $0.57, with analysts predicting potential major price increases, citing bullish patterns and historical cycles.
- Despite optimism, some indicators suggest a possible near-term correction.
XRP on the Move
The cryptocurrency market has headed north in the past several days, with Ripple’s XRP being one of the top performers. Its price is up approximately 25% on a weekly scale, briefly hitting a three-month high of almost $0.57 (per CoinGecko’s data) a few hours ago.
Multiple traders and analysts noted the coin’s progress, speculating that it is gearing up for further gains in the near future. The X user Mikybull Crypto claimed the rally “is just getting started,” adding that the asset may mimic the 2017 cycle bull run. Recall that XRP’s price was less than $0.01 at the start of 2017, while 12 months later, it neared $2.30 (representing a whopping 38,000% increase).
“Something big is brewing,” Mikybull Crypto concluded.
Crypto Michael chipped in, too, arguing that XRP could become “one of the biggest pumps of the year” once breaking above $0.56. As mentioned above, the valuation surpassed that mark before retracing to the current level of around $0.54.
Armando Pantoja was also bullish, envisioning a price explosion toward the staggering $20. He based the forecast on the historic pattern formed recently on XRP’s price chart: the Bollinger Band metric.
The width of the tool’s bands is used to gauge volatility: wider bands signal higher volatility, while the opposite case indicates less-enhanced price swings, which might be followed by a violent move in any direction.
One X user noted that the bands were quite tight last week, reminding that the last time they squeezed like that, XRP skyrocketed by 60,000%.
The Bearish Scenario
Despite the predominant optimism among industry participants, some important indicators suggest XRP could experience a correction in the near future.
The Relative Strength Index (RSI), which measures the speed and change of an asset’s price movements, has recently spiked above 83, a score last seen in November 2023. This is usually indicative of overbought price conditions.
The oscillator ranges from 0 to 100 as a ratio below 30 signals about oversold conditions and possible price rallies. When the score is above 70, XRP might be due for a pullback. Currently, the RSI is in neutral territory with a ratio of 60.
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