Renowned economist and Bitcoin analyst, Mikybull, is anticipating a surge in XRP’s price following an imminent breakthrough of a crucial resistance level on the monthly Relative Strength Index (RSI).
Since its decline from the $1.96 peak in April 2021, XRP has been trading within a symmetrical triangle on the monthly timeframe. This pattern has resulted in lower highs and higher lows, consequently impacting the monthly RSI of XRP.
As a result, the monthly RSI of XRP has been in a downward slope, indicating a prevalent downtrend since April 2021. Mikybull suggests that the downtrend affecting the monthly RSI needs to be broken before XRP can experience an upward price movement.
Interestingly, a similar pattern occurred from 2014 to 2017, when XRP faced downward pressure. During that period, XRP’s RSI also experienced a downtrend as it dropped from the $0.028 high in December 2014 and traded between $0.007 and $0.004 until February 2017.
However, XRP broke the downward trendline when the RSI surpassed the resistance level in February 2017. This event triggered a significant rally for XRP, culminating in its all-time high of $3.31 in January 2018.
Mikybull expects this pattern to repeat itself, suggesting that the RSI will soon break out. He points to a positive trend, which is the series of retests that XRP has undergone on the lower trendline. The analyst’s chart indicates that XRP retested the trendline three times between 2014 and 2017 before the breakout.
Similarly, XRP has carried out three retests within the current phase. The first retest occurred in December 2020 when XRP dropped to $0.17, followed by a second retest in January 2023 when it slumped to $0.3. The most recent retest took place last month as XRP retraced to the $0.42 low on April 13.
Another positive trend indicating an imminent breakout is the resurgence of whale accumulation. XRP whales have been accumulating more tokens since March, with addresses holding between 1 million and 100 million XRP, as well as those holding at least 1 billion XRP, consistently increasing their holdings.
Addresses with balances between 1 million and 100 million XRP have accumulated 600 million XRP since March 4, bringing their cumulative balance to 10.39 billion XRP. Those holding 1 billion XRP and more have acquired 290 million XRP since March 11, currently holding 23.68 billion tokens.
While Mikybull did not provide any specific price targets for XRP, other market watchers have projected various price levels for the cryptocurrency. Analyst EGRAG recently suggested that XRP could reach a new cycle high above $3.84 in September. Additionally, Javon Marks has consistently predicted a price rally that could push XRP to an ambitious $200 price. Abdullah Nassif, host of The Good Morning Crypto show, projected that XRP could trade anywhere between $13 and $17 based on the recent tightening of the Bollinger Bands on the monthly timeframe.
It is important to note that this content is for informational purposes only and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses incurred.