Emily Walker
A Chartered Market Technician (CMT) analyst recently presented a chart examining the potential for XRP prices to rise. He based his insights on important technical signals, indicating that a significant upswing is still possible before the market becomes overbought.
Indicators Point Towards Bullish Trends for XRP
Crypto analyst Tony Severino, who is CMT-certified, shared his findings on X (formerly known as Twitter) on December 18, noting the potential for a bullish reversal in XRP’s price. He highlighted that the convergence of historical signals and narrowing Bollinger Bands (BB) suggests an upcoming rally for XRP.
Severino expressed renewed confidence in XRP’s upward prospects, admitting he had previously underestimated its strength. He pointed out that the XRP/BTC quarterly chart is notably strong, with a three-month candlestick closing above the Bollinger Bands basis at 0.00001717, marking the first occurrence since April 2019.
He noted that XRP’s price previously hit the upper Bollinger Band at $0.0000286, a critical point correlated with strong bullish activity. Severino suggests that closing the quarter above this upper band could act as a buying signal, emphasizing that the Bollinger Bands are currently at their tightest ever for XRP/BTC.
Furthermore, the Relative Strength Index (RSI) for XRP on the three-month chart stands at 47.87 and is trending upwards toward 50 after surpassing its moving average of 43.44. Severino mentioned that an RSI above 50 typically reflects growing strength in a cryptocurrency, and historically, significant price fluctuations have occurred with an RSI above this threshold.
Additionally, he pointed out that XRP’s Fisher Transform indicates a bullish trend. This tool helps identify price shifts and trend reversals. According to Severino, XRP’s Fisher Transform recently turned positive after demonstrating a multi-year bullish divergence, reinforcing the possibility of a price increase and an optimistic outlook.
Momentum Oscillators Suggest Further Upside Potential
Alongside these technical indicators, Severino also pointed out that momentum oscillators such as the Logarithmic Moving Average Convergence Divergence (LMACD) and Stochastic Oscillator indicate a likely price surge for XRP. Presently, the bearish momentum in XRP’s LMACD is dissipating as it approaches a bullish crossover on the XRP/BTC chart for the first time. This shift hints at a possible trend reversal and an extended bullish outlook for XRP’s price.
Meanwhile, the Stochastic Oscillator shows a %K line reading of 71, which signals strong potential for continuous upward movement. This indicator also suggests that XRP has ample room before hitting overbought conditions. Currently, XRP’s price is $2.36, reflecting a 6% drop from its previous value of $2.5 within the past day, as per CoinMarketCap.