XRP, the cryptocurrency associated with Ripple, recently faced significant selling pressure that threatened to push its price below the $2 mark. However, analyst Steph has identified a potential rebound on the horizon that could potentially drive XRP’s price up nearly fivefold. In a recent tweet, Steph pointed out that the Bollinger Bands for XRP on the 12-hour chart are starting to tighten once again. This technical setup has historically preceded significant price movements, with the most recent example being a 490% rally observed a few weeks ago.
The Bollinger Bands indicator measures market volatility and provides key support and resistance levels. When the bands contract, it signals reduced volatility and often indicates an imminent major price movement. The last time the Bollinger Bands tightened on the 12-hour timeframe for XRP, it triggered a parabolic surge that saw the token’s price soar from around $0.49 to $2.90 within a month.
Analyst Steph has noticed another Bollinger Bands squeeze on the 12-hour chart for XRP, hinting at a potential breakout in the near future. Despite currently hovering around $2.26 after a recent bullish rally, XRP briefly revisited lows around $2.17, prompting concerns of a possible break below the $2 psychological mark. However, the tightening of the bands amid this price action suggests that market participants are anticipating the next major move for XRP, which could potentially lead to a significant price increase.
While some analysts like Steph speculate that XRP’s price could rise as high as $13.33 if history repeats itself with a 490% rally, others are adopting a more conservative outlook for the cryptocurrency in the short term. Market experts predict a potential price rally to between $4 and $5 before another correction phase. It is crucial for XRP to maintain support around the $2 level to facilitate a sustained bull run.
Analysts are closely monitoring key levels for XRP, with support around $2 considered essential for the cryptocurrency’s recovery. Casi Trade suggests two potential scenarios: a correction with support near the trendline or further bearish movement below it. Market commentators like Chad Steingraber and IncomeSharks also emphasize the potential for a rebound, with Steingraber identifying a potential launch point for new highs at a “double tap” around $2. So far, XRP has managed to stay above $2 during the recent market downturn.
Some traders are keeping a close eye on critical resistance at $2.90, as breaching this level could pave the way for further gains for XRP. Overall, the tightening of the Bollinger Bands and the anticipation of a potential breakout for XRP suggest that market participants are closely monitoring the cryptocurrency for any significant price movement in the near future.
