Altcoins
Indicators point to a repeat of 2017’s explosive rally: $3 on the way?
Despite XRP’s price beating against Bitcoin, indicators like the Relative Strength Index suggest a major bull run may be imminent. According to analyst Moon Lambo, historical metrics predict a bull run when XRP metrics align as they currently do.
The analyst also pointed out the importance of traditional markets, such as stocks, in influencing the performance of altcoins like XRP. Historical data suggests that for altcoins to perform well, traditional markets need to experience large movements. Here is a breakdown of his latest analysis:
XRP Bollinger Bands Analysis:
Bollinger Bands are a technical analysis tool that measures market volatility. The bands are narrowing for XRP on a monthly time frame, which historically indicates that a significant price move is imminent. Previous instances of such tight squeezes in the Bollinger Bands have led to massive price increases for XRP.
Narrowing Bollinger Bands indicate low volatility and a consolidation phase, which often leads to a significant breakout. This breakout could be either up or down, but considering the broader market context, an upside move is expected.
The last such event occurred in February 2017, when XRP was trading at half a penny. Following that squeeze, XRP experienced a sharp price increase.
Market sentiment and historical context:
Despite current bearish sentiment and a market downturn, these conditions often precede significant upward movements in the price of XRP. XRP recently fell 40% from its yearly high of 74 cents, influenced by broader market trends and events such as the Bitcoin crash and selling pressure from specific entities.
Conclusion:
He said that the market has had an explosive rally, reaching XRP’s all-time high of $3.31 in January 2018, which was a 5932.5% increase in one year. With the Bollinger Bands now showing a similar pattern, analysts are expecting another big rally. He agrees with this outlook but will not predict exact prices and believes that the market has a history of strong growth and could continue this trend as it expands.