XRP came under significant selling pressure that threatened a dip below the $2 level, but analyst Steph has cited a potential rebound that could propel its price nearly fivefold.
In a tweet on X, Steph highlighted that the Bollinger Bands for XRP on the 12-hour chart have started to tighten again. Historically, this technical setup has preceded significant price movements. The most recent example is the explosive 490% rally observed a few weeks ago.
The Technical Setup
The popular Bollinger Bands indicator measures market volatility and provides key support and resistance levels. A “squeeze” occurs when the bands contract, signaling reduced volatility and often foreshadowing a major price movement.
For XRP, the last time this indicator tightened on the 12-hour timeframe triggered a parabolic surge, elevating the token’s price from around $0.49 in the first week of November to $2.90 by the first week of December.
Will History Repeat?
Now, analyst Steph has noticed another Bollinger Bands squeeze on the 12-hour chart, speculating that another breakout may be imminent.
Currently, XRP’s price is hovering around $2.26, consolidating after its recent bullish rally. Yesterday, XRP revisited lows around $2.17, coming close to breaking below the $2 psychological mark.
Nevertheless, the observed tightening of the bands amid this price action suggests that market participants are anticipating the next major move.
If the breakout follows a similar 490% rally as seen a few weeks ago, market participants could see XRP’s price rise as high as $13.33.
However, while the prospect of history repeating itself is enticing, analysts like Steph are adopting a more conservative price outlook for XRP in the short term rather than targeting a lofty $13. Some believe that $13 could represent the peak for XRP in this cycle.
In the near term, market analysts are predicting a price rally to between $4 and $5 before another correction phase.
Key Levels to Watch
Amid the ongoing correction, analysts emphasize the importance of XRP maintaining support around the $2 level for a continued bull run.
Casi Trade suggests two potential scenarios: a correction with support near the trendline or further bearish movement below it. She noted that holding the $1.90–$2.00 range is crucial for XRP’s recovery.
Market commentators like Chad Steingraber and IncomeSharks also highlight the potential for a rebound, with Steingraber seeing a “double tap” at $2 as a potential launch point for new highs. So far, in the latest market downturn, XRP has held above $2.
On the other hand, some traders are watching critical resistance at $2.90, which could pave the way for further gains if breached.
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.
