- XRP breaks above Bull Market Support Band, signaling potential surge ahead.
- Conservative move targets $8–$13, while practical targets $27–$31 for XRP.
- RSI at 61.14 shows bullish momentum, nearing overbought territory.
XRP has reached a critical milestone, breaking above the Bull Market Support Band (BMSB) for the first time in its history. According to analyst EGRAG CRYPTO, this is a game-changing moment for the cryptocurrency.
With five months remaining in the current cycle, XRP’s position above the BMSB could signal an upcoming surge. While market conditions are volatile, the technical outlook suggests that XRP is poised for significant gains.
XRP’s Historic Break Above the Bull Market Support Band
For the first time ever, XRP has closed a six-month candle above the Bull Market Support Band, a critical technical level. As of now, the lower edge of the BMSB is set at $2.
Statistically, it is highly unlikely that XRP will drop below this level in the near future under normal circumstances. However, market dynamics could change due to unpredictable events such as geopolitical crises or global pandemics.
If these occur, all assets, including XRP, could experience significant losses. Nevertheless, in the absence of such Black Swan events, XRP’s price action suggests that a historic move is on the horizon.
Conservative vs. Practical Measured Move Targets
EGRAG CRYPTO provides two potential measured moves for XRP based on its current chart patterns. The conservative target, based on the middle of the triangle pattern, suggests a price range between $8 and $13.
This target appears achievable, given the current technical setup. However, a more practical and historically grounded measured move could push XRP’s price significantly higher, with a potential range of $27 to $31. This would mark an explosive breakout for XRP, potentially taking it well beyond the $20 level.
Analyzing XRP’s Price and Inflow Trends
XRP’s price movements have been influenced by fluctuating inflows and outflows over the past several months. Between April and early November, outflows dominated, reflecting bearish sentiment and limited price volatility.
However, a sharp reversal occurred in November, with large inflows. Despite some fluctuations in December, including large outflows, XRP’s price stabilized above $3.
As of January, outflows continued, indicating profit-taking behavior as XRP hovered near $3. These trends suggest that XRP is currently in a consolidation phase, with potential for further upward momentum if inflows return.
Technical Indicators: RSI and MACD
As of press time trading $3.09, XRP’s Relative Strength Index (RSI) stands at 61.14, signaling moderate bullish momentum. While this indicates an upward trend, it also suggests that XRP is nearing overbought territory. The RSI has not yet reached its recent peak of 65.54, implying that there may be room for further gains before a cooldown.
Additionally, the Moving Average Convergence Divergence (MACD) indicates bearish momentum, with the MACD line below the signal line and negative histogram bars. But the narrow nap between them suggests a bullish crossover, during periods of high buying pressure.
