Financial expert Mikybull Crypto (@MikybullCrypto), a well-known Bitcoin analyst, has set his sights on XRP, predicting a potential price surge on the back of a technical indicator reaching a critical juncture. He shared a monthly chart showing an imminent breakout in XRP’s Relative Strength Index (RSI).
XRP is currently in a symmetrical triangle which began in April 2021. The digital asset has exhibited a series of lower highs and higher lows, impacting its monthly RSI. This downtrend in the RSI has persisted since April 2021.
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Mikybull Crypto draws a parallel between the current situation and XRP’s historical performance between 2014 and 2017. During that period, XRP experienced a similar downward trend, plummeting from a high of $0.028 in December 2014 to trading within a narrow range between $0.007 and $0.004 until February 2017. Mirroring the price action, the RSI also displayed a downtrend.
It's about to get interesting for XRP given the imminent breakout of the resistance of RSI level. https://t.co/T5JMmGSvlO pic.twitter.com/9t2vYuijGO
— Mikybull 🐂Crypto (@MikybullCrypto) May 6, 2024
However, a significant shift occurred in February 2017. The RSI decisively broke above a key resistance level, signaling a potential reversal for XRP. This breakout coincided with a monumental rally that culminated in XRP reaching its all-time high of $3.84 in January 2018.
An analyst recently shared a timeline for XRP to reach a new all-time high, adding credence to this bullish sentiment.
Retests and Whale Accumulation Strengthen the Case for a Breakout
Mikybull Crypto believes a similar breakout for the RSI is imminent, and two key observations strengthen his case. Firstly, XRP has exhibited a pattern of retesting the lower trendline of the symmetrical triangle. XRP retested the trendline three times before the 2017 breakout. Notably, this pattern appears to be repeating itself in the current cycle.
The first retest was in December 2020, when XRP dipped to $0.17. The second retest happened in January 2023 during a price decline that brought XRP down to $0.30. The most recent retest occurred in April 2024, with XRP retracing to a low of $0.42.
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The second observation is renewed accumulation activity by XRP whales. Since March 2024, data from Santiment reveals a consistent increase in holdings by entities with significant XRP reserves. Wallets holding between 1 million and 100 million XRP, and those with at least 1 billion XRP are steadily accumulating more XRP.
Wallets in the 1 million to 100 million XRP range have accumulated an impressive 600 million XRP since March 4. Meanwhile, entities holding 1 billion XRP or more have amassed 290 million XRP since March 11. This significant accumulation by whales suggests their confidence in a potential XRP upswing, and many analysts share that belief.
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