The cryptocurrency market has been grappling with a significant correction recently, with Bitcoin (BTC) and Ethereum (ETH) seeing retracements of 2.2% and 4.6%, respectively. Despite this downturn, one cryptocurrency stands out: XRP. The price of XRP has shown early signs of a possible explosive surge, defying the broader market trend.
At the time of writing, XRP is trading at $2.21, reflecting a nearly 5% gain in the last 24 hours. The digital asset has demonstrated resilience, finding strong support just below its current price point, positioning it for further upward momentum. This comes after a bullish uptrend that began on November 5, which was fueled by positive macroeconomic events, such as the re-election of President-elect Donald Trump.
But what’s truly driving this surge? According to analysts, XRP’s price is poised for a breakout, particularly due to technical indicators suggesting a potential 490% rise.
Bollinger Bands Signal a Major Surge for XRP
One of the key technical indicators that have analysts buzzing is the tightening of the Bollinger Bands on XRP’s 12-hour chart. Bollinger Bands, which consist of a moving average and upper and lower bands, are often used to assess market volatility. The fact that the bands are converging suggests that XRP may soon experience a major price movement.
According to analyst Steph, the last time the Bollinger Bands tightened in such a manner, XRP’s price exploded by an astonishing 490%. If history repeats itself, this could send XRP to an all-time high of $10.82, well above its previous peak of $3.40 recorded in January 2018.
This price target, if realized, would mark a dramatic new high for the cryptocurrency, signaling massive investor interest and a new phase of growth for XRP. The current bullish momentum is also supported by XRP’s recent gains, with analysts noting that the token has found strong support at $2.21, a key psychological price point.
🚀 XRP Poised for Huge Surge! 🚀
XRP has gained 5% in 24 hours, with Bollinger Bands signaling a potential 490% rise to $10.82. Analysts are also forecasting a 600%+ increase, possibly reaching $168.
Regulatory changes under President-elect Trump could fuel this rally.🔗Read… pic.twitter.com/gBZMAKZVGX
— Jackie ☀️ (@JackieFLR) December 21, 2024
A Look at Past Bull Cycles: Can XRP Repeat Its Success?
The optimism surrounding XRP isn’t just limited to the Bollinger Bands indicator. Analyst Javon on X (formerly Twitter) has also pointed out that XRP’s last full bull cycle saw a massive increase of over 600%. Drawing from this historical pattern, Javon believes XRP could experience another monumental surge, potentially increasing by up to 6,800%. This would push the price of XRP towards $168.
Javon’s projections are based on the price breaking through the 2.414 Fibonacci Extension level, which was previously valued at $3.06. If XRP can surpass this threshold, it would open up the potential for even more substantial gains.
However, not all analysts are as optimistic. While some predict extreme growth, others have adopted a more conservative stance. DarkDefender, another well-known analyst, sees a more measured approach. He predicts that XRP will likely retest the $2.42 level before pushing through the $2.92 mark. Once it surpasses this level, targets of $3.43 and $5.85 could come into play. Despite these varying forecasts, there is a consensus among most analysts that XRP’s price will likely break its previous all-time highs in the near future.
The Role of Regulatory Changes in XRP’s Surge
While technical factors are clearly playing a role in XRP’s price surge, it’s also important to consider the potential impact of regulatory changes. The prolonged legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has been a major roadblock for XRP, stifling its price potential and causing a lengthy period of consolidation.
However, with President-elect Donald Trump set to take office, there is a growing sense of optimism among XRP supporters. Trump has promised a new regulatory framework for digital assets in the United States, which could resolve the legal issues surrounding XRP and lead to greater clarity in the crypto market.
If this new regulatory framework is implemented, it could open the door for XRP to gain further traction in the market, potentially unlocking a new wave of institutional and retail investment. With the SEC’s case against Ripple likely nearing its conclusion, the regulatory landscape could become more favorable for XRP, leading to a period of sustained growth and price appreciation.
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