Notable economist and Bitcoin analyst Mikybull expects XRP to stage a rally following an imminent breakout of a pivotal resistance level on the monthly RSI.
XRP has been trading within a symmetrical triangle on the monthly timeframe since it dropped from the $1.96 high in April 2021. Amid this triangle, XRP has continued to record lower highs and higher lows, essentially impacting its monthly relative strength index (RSI).
Due to this, XRP’s monthly RSI has continued to slope down, witnessing a prevalent downtrend since April 2021. Citing historical data, Mikybull believes the downtrend impacting the monthly RSI needs to break before XRP can witness an upward price push.
Notably, this pattern played out from 2014 to 2017, when XRP faced a similar downward pressure. XRP slumped from the $0.028 high in December 2014 and traded between $0.007 and $0.004 from that month till February 2017. During this downward pressure, the RSI also faced a downtrend.
However, XRP breached the downward trendline when the RSI broke above the resistance level in February 2017. This event led to XRP’s monumental rally, culminating in the all-time high of $3.31 in January 2018.
Trends Suggesting an Imminent Breakout
Mikybull expects the same pattern to play out, suggesting that the RSI will soon break out. A positive trend bolstering his optimism is the series of retests engineered by XRP on the lower trendline. The analyst’s chart reveals that from 2014 to 2017, XRP retested the trendline thrice before the breakout.
It's about to get interesting for XRP given the imminent breakout of the resistance of RSI level. https://t.co/T5JMmGSvlO pic.twitter.com/9t2vYuijGO
— Mikybull 🐂Crypto (@MikybullCrypto) May 6, 2024
Now, it has also carried out these three retests within this phase. The first retest occurred in December 2020 when XRP dropped to $0.17, the second retest came up in January 2023 amid a slump to $0.3, and the third one occurred last month as XRP retraced to the $0.42 low on April 13.
Another positive trend suggesting an imminent breakout is a resurgence of whale accumulation. XRP whales have taken to amassing more tokens since March. Per Santiment data, addresses holding between 1 million and 100 million XRP and those holding at least 1 billion XRP have continued to increase their holdings.
The wallets with balances between 1 million and 100 million have amassed 600 million XRP since March 4. This accumulation trend has brought their cumulative balance to 10.39 billion XRP at the last check. Those holding 1 billion XRP and more have procured 290 million XRP since March 11, now holding 23.68 billion tokens.
Multiple XRP Targets Eye $3.84 to $200
Meanwhile, despite his confidence in an imminent rally, Mikybull failed to present any price targets for XRP. Nonetheless, multiple market watchers who expect a similar upsurge have projected several price targets. Analyst EGRAG recently asserted that XRP could secure a new cycle top above $3.84 in September.
In addition, Javon Marks has been consistently predicting a looming price rally that could take XRP to an ambitious $200 price. Last month, Abdullah Nassif, host of The Good Morning Crypto show, projected that the recent tightening of the Bollinger Bands on the monthly timeframe could take XRP anywhere between $13 and $17.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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