Crypto market strategist Mikybull recently ignited excitement among XRP enthusiasts by referring to the current price structure of XRP as a “technical time bomb waiting for an explosion.”
The seasoned analyst compared XRP’s present price action to the market behavior seen in 2017, suggesting a massive rally is imminent. Specifically, Mikybull shared a long-term chart of XRP showing a classic pattern forming with price consolidating in a tight range.
XRP on a “Technical Time Bomb”
This current setup has historically preceded significant bullish volatility for XRP, leading many in the crypto community to anticipate a breakout. “It’s looking like a 2017 kind of price action formation,” Mikybull commented, referencing the parabolic surge XRP experienced after a similar period of consolidation seven years ago.
This was specifically in 2017 when XRP’s price action exhibited a period of consolidation characterized by compressed candlestick patterns in the early months. Following this tightening range, the XRP price suddenly surged and began a strong upward trend, eventually reaching an all-time high.
However, this trend reversed to bearish in 2018, and XRP’s price action formed another classical pattern. In particular, the chart stretching over several years now depicts a compression of the Bollinger Bands, an indicator that measures volatility.
As with the 2017 formation, when these bands tighten, it’s a sign that the asset is gearing up for a powerful price move.
Meanwhile, looking at XRP’s seven-year candlestick chart through a different indicator shows that the asset has been trading within a massive triangle and is currently nearing a breaking point.
While a breakout could be either to the upside or downside, the popular consensus among market watchers is that XRP is likely to explode upwards, as seen before. Even some skeptics have shared this sentiment, noting that XRP’s downside risk is low when looking at multiple indicators.
XRP Potential Targets
As a result, analysts like Mikybull believe XRP is on a technical time bomb, set to explode as seen about seven years ago. While confident in XRP’s bull run, Mikybull failed to mention potential targets XRP could attain in this latest analysis.
However, in an earlier analysis, he set his outlook at $4, which he considers realistic. This is unlike some other analysts who believe that when XRP finally breaks out, it will calibrate the same rally as in 2017, when XRP soared by over 75,000%. The more ambitious analysts have projected up to $300 for XRP.
At press time, XRP is worth $0.58, which reflects an 84.75% drop from its all-time high.
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