- XRP technical indicators, including Bollinger Band Width (BBW) and relative strength index (RSI), suggest the potential for a major price movement, similar to the 2016-2017 rally.
- The ongoing SEC vs Binance case and the recent amendment to the consideration of Solana and other altcoins as non-securities could expedite the Ripple lawsuit settlement.
Ripple’s native cryptocurrency XRP has been on a strong price rally recently with more than 35% gains on the monthly chart. As of press time, the XRP price is trading 3.84% up at $0.6514 with a market cap of $36.4 billion and daily trading volumes shooting by 355 to $2.44 billion, per the CNF report.
Interestingly, the XRP price is showing patterns similar to that in 2018 just before its magnanimous rally of 60,000%. During July, the Bollinger Band Width (BBW) on XRP’s monthly chart shows that the XRP/USD trading pair has been moving in a very tight trading range.
From a technical point of view, such periods of low volatility often precede major price movements. In other words, when the bands are narrow, it indicates that a breakout—either upward or downward—may be imminent as the market returns to higher volatility.
During the 2016-2017 session, XRP’s BBW was the narrowest leading to a flatline price action inside the $0.0050-0.0090 range. However, it eventually led to a staggering 66,000% breakout along with XRP’s monthly volatility with the BBW readings surging from 66.50 to as high as 982.22.
Interestingly, this time, the XRP BBW consolidation has lasted for nearly twice the time as during 2016-2017, with the monthly volatility being even lower.
Will the XRP Price Repeat a 60,000% Rally?
As per the Crypto News Flash report, there’s been a strong surge in the XRP whale activity recently. Checking on a monthly time, the XRP price currently trading at $0.65 is close to the middle Bollinger Band. Thus, the positioning near the middle band reflects balanced market forces, which are neither bullish nor bearish. Furthermore, XRP’s relative strength index (RSI) on the monthly timeframe is 53, also suggesting a neutral sentiment.
Nonetheless, XRP/USD is trading above the middle Bollinger Band, indicating a slight bullish tilt in the market. Combined with the similar Bollinger Bandwidth contraction observed during the 2016-2017 session, this suggests the potential for another substantial price movement.
On the other hand, on a multi-year chart, the XRP price is forming a giant symmetrical triangle hinting at a mega rally going ahead. This indicates an upside continuation if the XRP price delivers a strong price rally.
The breakout from the symmetrical triangle suggests a move between the lower and the upper trendlines following the breakout point. Thus, applying the same to the XRP price chart, we get an upside target of $14.75 which is up by 2.200% from the current levels.
The recent development in the SEC vs Binance case has raised hopes for a faster settlement in the Ripple lawsuit. With the SEC amending the consideration of Solana and 10 other altcoins, not to be securities, it could clear the path ahead for XRP as well, per the CNF report. This could be a major trigger in the XRP rally going ahead.
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