XRP has made big strides in the market, with its price rising from $0.51 in early November to $2.90 by December 3. This 464% increase within a month has generated considerable attention.
Despite a pullback to $2.35 after reaching a peak, technical analysis suggests further growth potential for the cryptocurrency.
Cryptocurrency analyst Steph has pointed to key technical indicators supporting XRP’s potential. The Bollinger Bands, which measure market volatility, are expanding on XRP’s 4-hour chart.
This signal has historically been followed by big price movements.
In November, a similar band expansion preceded a 132% price surge. Other expansions led to XRP price increases of 53% and 120%.
The current expansion suggests that XRP may experience another price rally movement, though market conditions are fluid.
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Bull Flag Breakout Suggests Continued XRP Uptrend
Steph also highlighted a bull flag breakout on the daily chart. This pattern often indicates a continuation of upward trends after consolidation.
XRP’s price has remained above the key support level of $2.33, currently trading at $2.35. Maintaining this support is crucial for sustaining the bullish outlook.
The next resistance level is identified at $2.60. If XRP closes above this level, it would confirm the continuation of the uptrend.
Steph has set a short-to-medium-term price target for XRP at $4.90 to $5, based on Exponential Moving Average (EMA) support.
Decline in Bitcoin Dominance Benefits Altcoins
Bitcoin dominance has dropped below a rising wedge pattern, currently testing the breakdown level near 57%. A further decline in Bitcoin dominance would likely benefit altcoins.
Historically, Bitcoin dominance has found support in the 47–50% range. Should it fall into this range, it could signal a favorable environment for altcoins like XRP.
This trend could provide the necessary conditions for XRP to reach the $5 target price.
The analyst advises Investors to closely watch Bitcoin dominance as it approaches the 47–50% range.
A reversal from this zone could impact market dynamics. However, with strong technical indicators, XRP remains in a position to benefit from this broader market shift.
More Analyst Predictions For XRP Price
XRP’s breakout from a 5.5-year consolidation has sparked bullish predictions, despite recent volatility.
Analyst Amonyx sees this breakout as a sign of potential massive upward momentum, predicting XRP could reach as high as $251, a target based on the 161.8% Fibonacci retracement level.
Amonyx’s outlook compares this breakout to XRP’s 2017 rally, which saw a 284% gain after a similar consolidation phase.
Other analysts, including CryptoBull and Michael van de Poppe, share a bullish perspective.
CryptoBull believes XRP is nearing the end of a correction phase and forecasts a surge to $6, while van de Poppe sees XRP’s movements as a key indicator for the broader altcoin market.
Technical analyst EGRAG has also identified critical levels for XRP, noting that a close above $2.30 on the 3-day chart would signal further bullish momentum, with $2.62 as the next resistance.
Despite the recent dip, whale activity remains strong, with huge XRP accumulation, suggesting renewed demand could support the cryptocurrency’s price growth heading into 2024.
Source: https://www.thecoinrepublic.com/2024/12/21/xrp-news-will-holders-lead-the-next-crypto-rich-list/