XRP, Ripple Labs’ cryptocurrency to reach a new all-time high of $1.25 following the spike in the cryptocurrency in the past month.
The price of XRP has broken through an unclear pattern that favours the bulls, although it is now trading sideways. This lack of volatility is what is keeping the remittance token quiet. A return of investor interest and capital inflows, on the other hand, might drive an exponential advance.
On Google Trends, XRP has behaved similarly to the rest of the cryptos in the previous few days. It has been forming crests and troughs for a long time.
Price volatility awaits XRP
The price of XRP appears to be heading in the direction of volatility. The price of Ripple had formed three lower lows and two higher lows as of December 21st. An asymmetrical triangle is formed by connecting these unique swing points with trend lines.
Until the asset breaks out of this technical pattern, there is no directional bias, and it projects a 46% increase to $1.25. The distance between the initial swing high and low is added to the breakout point at $0.84 to arrive at this goal.
Ripple broke over the top trend line on March 23, signifying a bullish breakthrough. The cryptocurrency has been drifting sideways since then, with no signs of volatility. According to the theoretical forecasting approach, the price of XRP is expected to revisit the $1.20 barrier.
Bulls must remain above the top trend line of the abovementioned pattern and slice through the $1 psychological threshold for this move to materialize.
It will open the door for more profits if this critical barrier is dipped into a support level. If purchasing pressure continues to grow, the rise might extend to $1.61 in some situations. This rise, however, would represent a 95% increase over the current price of $0.82.
While the bullish thesis outlined from a technical perspective is credible, the supply distribution on-chain statistic lends support to it. This index keeps track of Ripple wallets that are divided into categories according to how many tokens they have.
Since December 25, whales with more than 10,000,000 Ripple coins have been building up, according to this on-chain index. In the previous three months, the number of wallets that fit this description has risen from 311 to 341.
The Ripple network has added 30 new whales with a combined ownership of over 10 million XRP coins. This index represents these investors’ intents and positive XRP price forecasts. As a result, in the following weeks, market players should expect a massive rally in the Ripple price.
Many people believe that the price of Ripple will climb since it has a number of strong technical and on-chain indicators. This might be due to the fact that ripple has a lot of ties to larger cryptocurrencies. A significant decline in the price of Bitcoin will damage the value of Ripple and its owners, regardless of how powerful the bullish breakout is.
If the XRP price closes decisively below $0.69, a lower bottom will be formed, and the bullish pennant formation will be completed.