Ripple (XRP) Could Be Gearing Up For A ‘Mega Bomb’ (Analysts Go In)

TL;DR

Some analysts are predicting a significant price increase for XRP, comparing current market conditions to the rise in 2017. The reduced supply of XRP on exchanges suggests lower selling pressure as more investors may switch to self-custody methods, possibly supporting the upward price movement. Is the “euphoric phase” coming?

Ripple’s XRP has shown a rather volatile performance of late, with its value falling 7% on a two-week scale. It hit a local low of around $0.50 before recovering some of the losses and rising to the current $0.53 (according to CoinGecko data).

XRP Price, Source: CoinGecko

Some analysts believe that explosive price growth could soon replace the negative trend. User X EGRAG CRYPTO, for example, claimed that XRP could experience a repeat of the 2017 bomb.

Its valuation then skyrocketed from just $0.25 in December 2017 to an all-time high of $3.40 just one month later (a 1,250% increase). A similar bull run today would result in a new peak of approximately $7.20 per XRP.

“XRPArmy KEEP STABLE. The next euphoric phase will be known as the XRP MEGA PUMP. Get ready,” EGRAG CRYPTO added.

Earlier this week, The Great Mattsby argued that XRP’s monthly Bollinger Bonds continue to tighten and are now “much tighter than 2017”. The analyst surmised that this development would eventually result in a massive rally for Ripple’s native token.

Developed by John Bollinger in the early 1980s, this technical indicator helps traders identify when an asset may be overbought or oversold, thus spotting potential reversal points.

The narrowing of the bands means that XRP has experienced relatively low volatility for an extended period of time and could be headed for a major rally (or correction). It is worth noting that historically, this development has resulted in upward price movement.

Those willing to explore additional predictions involving XRP, feel free to check out our detailed article here.

Another bullish sign

The decrease in the supply of XRP on cryptocurrency exchanges should also be mentioned when speculating on the possible future market dynamics of the asset. As CryptoPotato recently reported, the number of tokens held on trading sites dropped to a seven-month low.

This change generally indicates that investors may have moved from centralized platforms to self-custody methods, leading to a reduction in immediate selling pressure.

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