XRP is attracting strong attention after the price surged nearly 500% in the past few weeks. Despite a significant correction after reaching a peak of $2.90 on December 3, analyst Steph (also known by the nickname Steph is Crypto on X) believes this is just the beginning. He predicts that the price of XRP could reach $5, which is double its current value.
Bollinger Bands signal significant volatility
Steph points out that the recent expansion of the Bollinger Bands on the 4-hour chart indicates the potential for a price breakout. This is a technical indicator that measures volatility, often associated with significant market fluctuations.
In November, a similar situation drove the price of XRP up 132%. If this scenario repeats, Steph notes that XRP could reach $5. Additionally, on the daily chart, XRP has surpassed a bullish flag pattern – a common signal that the upward trend is still ongoing. Important levels to watch include:
• Support level: $2.33
• Resistance level: $2.60
If it surpasses the $2.60 level, the price of XRP could pave the way for stronger growth.
The impact of the RLUSD stablecoin
Another factor driving the price of XRP is the launch of the RLUSD stablecoin issued by Ripple. This stablecoin, pegged to the USD, is available on both the XRP Ledger (XRPL) and the Ethereum blockchain. RLUSD is backed by cash and U.S. government bonds.
The announcement of RLUSD helped XRP's price rise over 12% shortly afterward, temporarily bringing the price to $2.64. Although the price has slightly decreased to $2.52 due to market correction, the fundamental factors still maintain a positive outlook for XRP.
Conclusion
With strong technical signals from the Bollinger Bands and the bullish flag pattern, along with the positive impact from the launch of RLUSD, XRP is showing potential to enter a new bullish cycle. Currently, the price is fluctuating around $2.52, but analysts still expect the $5 target to be reached soon.
