Ripple XRP is showing intriguing technical indicators. Crypto analyst Tony “The Bull” Severino has observed that XRP’s monthly Bollinger Bands are at their tightest point ever.
Historically, such tight Bollinger Bands often precede significant price movements. This development has also caught the attention of many analysts.
XRP’s Technical Indicators
Bollinger Bands are a popular tool for measuring market volatility. When these bands close, it signals a period of low volatility. In XRP’s case, the current contraction is even tighter than before its massive 60,000% rally in 2018.
This surge made XRP’s price jump from less than a cent to $3.84(its all-time high). Apart from the BB, the analyst’s chart shows that XRP’s Relative Strength Index (RSI) has recently hit a historic low.
$XRP monthly Bollinger Bands are the tightest ever
Tighter than before the historic 60,000% rally that ended in early 2018 pic.twitter.com/OFTTkcDxDU
— Tony “The Bull” Severino, CMT (@tonythebullBTC) July 30, 2024
These technical signals have led some analysts to predict a potential price surge. In his part, Severino suggests that XRP might recreate or even surpass its previous rally.
However, not all investors share this optimistic view. Some argue that charts alone cannot predict market movements, as investor emotions are crucial.
Charts don’t mean shit, haven’t meant shit, for years. Completely irrelevant to what happens with $XRP. I’m a big bag holder, but the emotional reactions are not predictable with this. At all. Just more clickbait.
— Big Wayne (@BigWayne111) July 30, 2024
Potential Price Targets and Community Reactions
Due to the technical indicators, the crypto community is buzzing with speculation about the coin’s future price. Moon Lambo, a prominent XRP supporter, shared Severino’s analysis, sparking further discussion.
Some analysts have set ambitious targets, with talk of a potential 600x rally. If history repeats itself as predicted, it could rally to $363.6. However, it’s essential to approach these predictions cautiously.
Popular Scott Melker Joins Others Predicting XRP Breakout
Scott Melker, the well-known trader, thinks too that XRP might be ready for another significant price increase. Surprisingly, many market analysts share his belief. Yesterday, July 31, the analyst shared a bullish XRP chart on the X platform.
$XRP WEEKLY
Have not looked at this chart in ages, but it is in a REALLY interesting spot here. 4th touch of descending resistance here on the weekly. Rejection likely, but a breakout has this flying… worth watching, regardless of your feelings towards the token. pic.twitter.com/2iInHCkfI2
— The Wolf Of All Streets (@scottmelker) July 31, 2024
“I have not looked at this chart in ages, but it is in a really interesting spot here,” said Melker.
According to Melker, this is the fourth time XRP has touched a downward resistance line on the weekly chart. It’s likely to get rejected again. However, the analyst believes the price could rise significantly if it breaks through this resistance.
This situation is “worth watching,” no matter what you think about XRP. Based on the trading chart Melker shared, the coin might surge above $1 soon.
From its current price level, XRP would require an increase of 65% to hit this target.
Meanwhile, XRP/USDT 4H is trading below the 50-day Simple Moving Average line, suggesting that the current momentum is bearish. The MACD also signals a bearish sentiment. It’s below its signal line and displays red histogram bars.
These indicators suggest the coin is falling. So, to be safe, wait for the price to break above these lines before entering the market. Note that while tight Bollinger Bands often precede significant moves, they don’t guarantee the direction of those moves.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
Our Editorial Process
The Tech Report editorial policy is centered on providing helpful, accurate content that offers real value to our readers. We only work with experienced writers who have specific knowledge in the topics they cover, including latest developments in technology, online privacy, cryptocurrencies, software, and more. Our editorial policy ensures that each topic is researched and curated by our in-house editors. We maintain rigorous journalistic standards, and every article is 100% written by real authors.
