Although XRP recently fell below a key psychological mark, some analysts believe that an explosive price move for the altcoin is still on the horizon.
On Friday, XRP briefly traded at $0.4935 amid widespread market weakness. However, on Saturday, the price rebounded to $0.5144, but fell back below $0.50.
XRP “The explosion is coming”
In a commentary on Sunday, pseudonymous analyst Random Crypto Pal shared XRP’s monthly chart and claimed that an explosion is imminent. This chart shows that XRP recently broke out of its seven-year trend line, and many analysts are claiming that this will be a defining moment for XRP.
The chart suggests that this breakout occurred in August. This month was the last time XRP traded in the $0.4 area before the recent breakout. Notably, XRP hit a low of $0.4335 in August and peaked at $0.6416 later that month.
In September, XRP rose to $0.6622, its highest level since falling from year-to-date highs.
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Supporters had expected XRP to continue its rise and reach new highs by October, but instead it fell to a two-month low over the weekend. However, Random Crypto Pal characterized this decline as a backtest for a breakout.
He said this was a “perfect retest of both trend lines” and suggested that a successful backtest could be followed by a dramatic price move.
Previous discussions on XRP’s explosive price rise
This latest commentary builds on Random Crypto Pal’s previous analysis that argued for significant price movements due to Bollinger Band tightening.
He noted that this tightening has only happened twice in the past, the first in early 2017 and the second in 2020, both of which led to significant price increases. While 2017 saw a staggering 71,381% increase in cases, 2021 saw a more modest increase of 1,602%. Basically, he expects this historical pattern to repeat itself.
Many other analysts have also highlighted tightening Bollinger Bands as an indicator of a potential price spike.
Will XRP collapse rather than explode?
However, some commenters on this analysis do not share Random Crypto Pal’s optimism. Some even suggested that the price of XRP could collapse rather than explode, while others predicted it would plummet to $0.15.
At the time of writing, XRP is trading at $0.5132, still recovering from the weekend drop.
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