A prominent market watcher predicts that XRP will soon break its all-time high, and asserts that XRP holders could become some of the richest investors.
It is noteworthy that XRP has attracted attention after its remarkable rise in November. The asset rose from $0.51 at the beginning of November to a peak of $2.90 on December 3, representing a 464% increase in just one month.
However, after this peak, XRP faced a pullback as it pushed towards $3. Although it has been consolidating between $2 and $2.60 for two weeks, analysts like Steve believe that a more explosive rally is on the horizon. He believes that such a rally could make XRP holders “the richest people you know.”
XRP Bollinger Bands Indicate Breakout
In his analysis, Steve drew attention to important indicators, including the Bollinger Bands on the 4-hour chart. Bollinger Bands, which track volatility, are now expanding—a pattern that often leads to large price movements.
It is noteworthy that the market watcher confirmed that in November, when the Bollinger Bands expanded in a similar manner, XRP saw a 132% increase from its low to its high.
Other notable moves have included 53% and 120% gains during similar patterns. According to Steve, the current expansions suggest that XRP could be on the verge of another major breakout.
Bull Flag XRP Hack
Meanwhile, Steve confirmed that XRP has indeed broken a bullish flag pattern on the daily chart. Such developments often indicate that the upward movement may continue after a period of consolidation.
The breakout was confirmed by multiple daily closes above a long-term resistance line. Interestingly, XRP is now holding above $2.33, a crucial support level. However, failure to hold this level could negate the uptrend, but as long as the price holds above it, the outlook remains bullish.
Steve then drew attention to $2.60 as a key resistance. He noted that a daily close above this level would further confirm the breakout. The analyst’s target for the next uptrend is $4.90 to $5 in the short to medium term.
The exponential moving average (EMA) bars on the daily chart support this bullish outlook. XRP retested these bars on December 10, and came back strongly. This suggests that the trend is still intact, providing additional support for the $5 price target.
Bitcoin Dominance Is Favorable for Altcoins
Additionally, Steve also highlighted Bitcoin Dominance, which measures Bitcoin’s market share compared to other cryptocurrencies. He suggested that the prevailing trend from this metric is actually bullish for altcoins like XRP.
On the weekly chart, Bitcoin’s dominance has been declining since it broke below a bullish chord pattern. Currently, the dominance is testing the breakdown level near 59%. As long as it stays below this threshold, the conditions look favorable for XRP and other altcoins.
Steve points out that Bitcoin’s dominance could drop to the 47-50% range, a strong support area that has been tested historically in July 2021 and October 2021. A drop to this area would likely trigger an altcoin season, potentially pushing XRP towards its $5 target.
Steve advised caution as Bitcoin’s dominance approaches the 47-50% support zone. This area could represent a turning point, making it a level that investors can look to lock in profits. However, for now, the analyst believes that XRP and other altcoins are still in a strong position. XRP is currently trading at $2.5, down 0.12% in the past 24 hours.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
