XRP, a cryptocurrency that recently experienced a price dip to $1.97, has quickly rebounded to $2.37, sparking hopes for a significant breakout. Market analyst Steph has expressed optimism for XRP holders, suggesting that they could soon see substantial gains that may make them the wealthiest crypto investors. Steph’s analysis points to the tightening of the Bollinger Bands on XRP’s 4-hour and 12-hour charts, a pattern that historically precedes notable price movements. He references a previous 490% rally triggered by a similar squeeze in November, indicating the potential for another major breakout.
Additionally, Steph highlights XRP’s recent breakout from a bullish flag pattern on its daily chart, with multiple daily closes above a long-term resistance line confirming the breakout. XRP is now holding above the crucial $2.33 support level, leading Steph to believe that as long as this support is maintained, the cryptocurrency has a positive trajectory ahead. He identifies $2.60 as a key resistance level to monitor, with a daily close above it further confirming the breakout. Steph sets a mid-term target range for XRP between $4 and $5, underlining his bullish outlook for the cryptocurrency.
Another factor contributing to XRP’s favorable setup is the shift in Bitcoin dominance, which measures Bitcoin’s market share relative to other cryptocurrencies. Steph notes that a decline in Bitcoin dominance creates a conducive environment for altcoins like XRP. Currently, Bitcoin dominance is testing a breakdown level near 56.6%, having dropped by 3.79% in the past 24 hours. If this downward trend continues, Steph predicts that Bitcoin dominance could reach the 47-50% range, historically a strong support zone. Such a decline could trigger an “altcoin season,” potentially propelling XRP towards its $5 target.
While expressing optimism for XRP’s potential rise, Steph offers a word of caution to investors, advising them to secure profits during the cryptocurrency’s ascent to avoid missing out before a pullback occurs. It is important for investors to exercise caution and conduct thorough research before making any financial decisions related to cryptocurrencies. The information presented in this article is for informational and educational purposes only, and readers are encouraged to exercise prudence and seek professional advice before engaging in financial activities. Coin Edition, the source of the information, disclaims any responsibility for losses incurred as a result of using the content, products, or services mentioned.
