Popular crypto analyst and Economist, Mikybull predicts an imminent price rally for XRP, the native asset of Ripple Labs Inc. The analyst forecast is based on XRP’s ability to break out of a resistance level on the monthly Relative Strength Index (RSI).
XRP to Follow Historical Patterns
According to technical analysis, XRP has been trading within a symmetrical triangle on the monthly RSI. This trend follows a drop from its $1.96 high in April 2021. XRP has maintained lower highs and higher lows during this triangle, which has effectively affected its monthly RSI.
As a result, XRP’s monthly RSI has been experiencing a downward trajectory since April 2021. For XRP to witness an upward price movement, Mikybull believes it must first break the downtrend impacting the monthly RSI.
Surprisingly, XRP faced a similar price pattern between 2014 and 2017. According to the details, XRP fell sharply from its high of $0.028 in December 2014 and traded between $0.007 and $0.004 until February 2017. Notably, during this negative pressure period, the RSI also fell.
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
XRP, however, breached the downward trendline when the RSI broke above the resistance level in February 2017. This incident sparked a substantial increase for XRP, recording an all-time high of $3.31 in January 2018.
Trends Supporting Analyst’s Forecasts
Citing this historical trend, the analyst suggests that XRP is on the move for a potential breakout. XRP’s string of retests on the lower trendline is a good trend reinforcing Mikybull’s optimistic forecasts. With Ripple’s XRP escrow stabilizing efforts, the liquidity to power this reboot is high.
Another key trend supporting Mikybull’s bullish optimism is the resurgence of whale activities. Recent data from Santiment reveals that addresses holding between 1 million and 100 million XRP and those holding at least 1 billion XRP have continued to increase their holdings since March.
At the time of writing, the price of XRP is trading at $0.5418, down by 0.42% in the past day. However, the trading volume has increased by a remarkable 184% to $1.8 billion.
