On Friday, $XRP
briefly traded at $0.4935 amid a market downturn. However, its price jumped to $0.5144 on Saturday, but then fell back below the $0.50 mark.
XRP - “The explosion is coming.”
In a Sunday commentary, pseudonymous analyst Random Crypto Pal shared a monthly chart of #Xrp🔥🔥 , claiming that an explosion is imminent. The chart shows that XRP recently broke out of a seven-year trendline, which multiple analysts believe will be a defining moment.
The graph shows that this breakout occurred in August, with XRP hitting a low of $0.4335 in August before peaking at $0.6416 later that month.
In September, XRP continued to rise and reached a higher level of $0.6622, its highest point since falling from its yearly high.
While supporters expected XRP to continue its uptrend and set a higher high by October, it instead fell to a two-month low over the weekend. However, Random Crypto Pal characterized the drop as a backtest of a breakout.
He stated that it was a “perfect retest of both trendlines,” suggesting that a successful backtest could be followed by a sharp price move.
Previous arguments in favor of explosive XRP price gains
This latest commentary builds on an earlier analysis by Random Crypto Pal, which argued for significant price movement due to narrowing Bollinger Bands.
He noted that such narrowing has only occurred twice - once in early 2017 and again in 2020 - both times leading to significant price increases. The 2017 case resulted in a staggering 71,381% increase, while the 2021 case showed a more modest 1,602% increase. Essentially, he expects a repeat of this historical pattern.
Many other analysts have also highlighted the narrowing of Bollinger Bands as an indicator of a potential price spike.
Will XRP collapse instead of exploding?
However, some commentators on this analysis do not share Random Crypto Pal's optimism. One even suggested that the price of XRP could collapse rather than explode, while another predicted a drop to $0.15.
At the time of publication, XRP is trading at $0.5132, still recovering from the weekend drop.