Renowned economist and Bitcoin expert, Mikybull, predicts that XRP will experience a significant surge in value after breaking through a crucial resistance level on the monthly Relative Strength Index (RSI).
Since its decline from a high of $1.96 in April 2021, XRP has been trading within a symmetrical triangle on the monthly timeframe. This pattern has resulted in lower highs and higher lows, which has had a notable impact on the monthly RSI.
As a result, the monthly RSI for XRP has continued to decline, indicating a prevalent downtrend since April 2021. Mikybull, drawing from historical data, believes that the downtrend affecting the monthly RSI must be broken before XRP can experience an upward price movement.
It is worth noting that a similar pattern occurred from 2014 to 2017, during which XRP faced downward pressure. XRP experienced a slump from its high of $0.028 in December 2014 and traded between $0.007 and $0.004 until February 2017. During this period, the RSI also showed a downtrend.
However, XRP managed to break the downward trendline when the RSI surpassed the resistance level in February 2017. This breakthrough led to a remarkable rally for XRP, ultimately reaching an all-time high of $3.31 in January 2018.
Based on these trends, Mikybull anticipates a similar scenario, suggesting that the RSI will soon break out. One positive trend supporting this optimism is the series of retests that XRP has undergone on the lower trendline. The analyst’s chart reveals that from 2014 to 2017, XRP retested the trendline three times before the eventual breakout.
In the current phase, XRP has also completed three retests. The first occurred in December 2020 when XRP dropped to $0.17, the second in January 2023 during a slump to $0.3, and the third happened last month when XRP retraced to a low of $0.42 on April 13.
Another encouraging trend indicating an imminent breakout is the resurgence of whale accumulation. XRP whales have been accumulating more tokens since March, with addresses holding between 1 million and 100 million XRP, as well as those holding at least 1 billion XRP, steadily increasing their holdings.
According to Santiment data, wallets with balances between 1 million and 100 million XRP have accumulated 600 million XRP since March 4, bringing their cumulative balance to 10.39 billion XRP. Those holding 1 billion XRP and more have acquired 290 million XRP since March 11 and now hold 23.68 billion tokens.
While Mikybull did not provide specific price targets for XRP, other market analysts who anticipate a similar surge have projected various price levels. EGRAG, an analyst, recently suggested that XRP could reach a new cycle high above $3.84 in September. Additionally, Javon Marks has consistently predicted a potential price rally that could propel XRP to an ambitious $200. Abdullah Nassif, the host of The Good Morning Crypto show, projected that the recent tightening of the Bollinger Bands on the monthly timeframe could push XRP anywhere between $13 and $17.
Disclaimer: This article is for informational purposes only and should not be considered as financial advice. The opinions expressed in this article are solely those of the author and do not reflect the views of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.
