XRP flashes buy signal on the daily Bollinger Bands indicator, with a market analyst predicting a rally similar to the 2017 uptrend in a push toward $150.
Tony “The Bull” Severino, chartered market technician and founder of CoinChartist, identified this buy signal in a recent analysis. An accompanying chart details how XRP collapsed toward the lower daily Bollinger Band amid the latest market correction.
XRP Rebounds as Bullish Sentiments Return
The German government’s Bitcoin (BTC) sales exacerbated the pressure on the market, leading to steep declines between July 4 and 8. These declines led to XRP retesting the lower Bollinger Band and even dropping below it on multiple occasions.
However, after the German government emptied their BTC stash, bullish sentiments returned. Remarkably, XRP spiked 40% from the $0.4032 low on July 8 to a three-month high of $0.5661 on July 13. This coincided with the anniversary of the ruling in the Ripple v SEC case, which declared XRP a non-security.
A Buy Signal on the Bollinger Bands
After hitting $0.5661, XRP witnessed a mild correction, but has maintained its hold above $0.52. Meanwhile, amid the latest uptrend, Severino emphasized that XRP had flashed a buy signal with the Bollinger Bands. A decisive close above the upper Bollinger Band ($0.5293) could supply the bullish momentum necessary for another leg up.
$XRP buy signal on the daily Bollinger Bands
This could have legs pic.twitter.com/p2u6OmPls4
— Tony "The Bull" Severino, CMT (@tonythebullBTC) July 13, 2024
However, for XRP to maintain this uptrend, several bullish factors must align. For one, a high trading volume is essential to support the price movement. This ensures that the surge receives sufficient backing from significant investor interest.
Nonetheless, XRP has witnessed a 46% drop in volume over the past 24 hours, currently sitting at $1.47 billion. This indicates reduced buyer interest as the rally faces a roadblock. Interestingly, despite the drop in trade volume, XRP is observing spikes in daily active addresses, Santiment data confirms.
Analyst Sets a $150 XRP Price Target
While Severino expects another push up, he fails to make any price projections. However, Javon Marks, another analyst has set an audacious target for XRP. In a recent analysis, he called attention to a coil pattern taking the form of a symmetrical triangle. This pattern, identified on the 18-day chart, has prevailed since 2018.
$XRP (Ripple) is pushing towards a potential breakout of this massive coil or "symmetrical triangle" pattern and a Full Logarithmic Follow-Through of this breakout can spark another legendary 2017 style run 👀!
A breakout and *full* log follow-through can result in a more than… https://t.co/ExELIJEMEg pic.twitter.com/cXO4ksLtnh
— JAVON⚡️MARKS (@JavonTM1) July 13, 2024
According to Marks, XRP is on the verge of breaking above this symmetrical triangle after six years. He believes XRP has the potential to repeat its historic 2017 upsurge. According to the analyst, such a repetition could push XRP by 300x to an ambitious $150 price target.
Meanwhile, XRP has surged 26% over the past 7 days, with the RSI at 65 and stabilizing, indicating it is not yet overbought. The rally has paused, and XRP is in a consolidation phase. With its trading volume down 46%, XRP is currently witnessing a decrease in buying momentum.
Despite this, the MACD line remains above the Signal line, suggesting that it has maintained the bullish potential. Nonetheless, for the uptrend to resume, XRP must see a renewal of buying interest and an increase in buying volume.
DisClamier: 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 opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
