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Market commentator Armando Pantoja reveals what he believes is “strong evidence” that confirms XRP is heading to the $20 price level.
He made this assertion in a recent post on X, looking to provide an analysis of XRP’s price movements amid the market turmoil. At the time of the analysis, XRP struggled at the $0.44 price territory following the collapse from the $0.7449 yearly peak attained in March.
Factors Catalyzing an XRP Rise to $20
With the bearish pressure threatening to wreak more havoc, Pantoja stressed that XRP has found robust support. According to him, this support currently lies between the $0.40 and $0.50 price region. The analyst believes this robust support is one factor potentially pointing to an imminent XRP rally to $20.
Strong evidence that $XRP on its way to $20
1. Strong support at $0.40-$0.50.
2. Near lower Bollinger Band, oversold
3. Moving average > current price; bullish
4. Low volume during consolidation; watch for a volume surge
5. Historical rallies after consolidation hint at… pic.twitter.com/PjWxb7IIGv— Armando Pantoja (@_TallGuyTycoon) July 11, 2024
He stressed that the second factor is XRP’s position relative to the Bollinger Bands. At its price then, XRP traded close to the lower Bollinger Band ($0.34206). While this level also serves as support, its major significance is that it indicates that an asset is oversold. Pantoja noted that XRP’s oversold nature is another bullish evidence of its potential push to $20.
Meanwhile, XRP has continued to trade beneath the 20 SMA due to downtrend. This pattern confirms that the downturn has persisted, with a flip of this moving average necessary for the momentum to turn bullish. However, XRP’s position below this pivotal level indicates the asset is underperforming compared to its recent average.
In addition, XRP’s trade volume has seen a drastic drop in recent times, as market interest wanes. Despite this, CoinMarketCap data confirms that volume has averaged $1.1 billion this month. Pantoja pointed out that the drop in volume coincides with XRP’s consolidation at the $0.4 region. He believes a recovery in trade volume could catalyze the uptrend to $20.
XRP Sees Reduced Volatility
A blend of consolidation and reduced volume can lead to decreased volatility. Such decreased volatility often triggers the tightening of the Bollinger Bands, a pattern currently observed with XRP. Pantoja’s chart shows that such tightening of the Bollinger Bands often comes before an explosive run.
This trend has played out throughout history, specifically in late 2017 and in mid 2021. The market analyst cites these factors as potential catalysts for an XRP rally to $20. In May, notable analyst Javon Marks called attention to a growing XRP RSI. He predicted that this phenomenon could lead to a breakout, with an ultimate target of $20.
Earlier this month, analyst XRP Sharks contented that XRP is still on track to hit $20 despite the latest downturn. With XRP currently changing hands at $0.4690, a push to $20 would require a 4,164% rally. Amid the persistent calls, market participants have continued to dismiss this target as wishful thinking.