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While XRP has recently dipped below a major psychological mark, some analysts believe that explosive price action is still on the horizon for the altcoin.
On Friday, XRP briefly traded at $0.4935 amid a broader market downturn. However, its price rebounded to $0.5144 on Saturday, only to dip again below the $0.50 mark.
XRP “Explosion is Coming”
In a Sunday commentary, pseudonymous analyst Random Crypto Pal shared XRP’s monthly chart to argue that an explosion is imminent. The chart illustrates that XRP recently broke out from a seven-year trendline, which numerous analysts have argued would be the defining moment for XRP.
The chart suggests that this breakout occurred in August, the month XRP last traded in the $0.4 region before the recent occurrence. Notably, XRP hit a low of $0.4335 in August before peaking at $0.6416 later that month.
In September, XRP went on to reach a higher level at $0.6622, marking its highest point since the fall from its yearly high.
While proponents expected XRP to continue the upward move and establish a higher high by October, it instead dipped to a two-month low over the weekend. However, Random Crypto Pal characterized this dip as a backtest of the breakout.
He stated that it is a “perfect retest of both trend lines,” suggesting that dramatic price action could follow after a successful backtest.
Previous Arguments for Explosive Price Growth for XRP
This latest commentary builds on Random Crypto Pal’s earlier analysis, which argued for significant price movement due to the tightening Bollinger Bands.
He noted that this tightening has occurred only twice before—once in early 2017 and again in 2020—both times leading to substantial price surges. The 2017 instance resulted in a staggering 71,381% increase, while the 2021 occurrence saw a more modest 1,602% rise. Essentially, he expects a repeat of this historical pattern.
Numerous other analysts have also highlighted the tightening Bollinger Bands as an indicator of a potential price surge.
XRP to Implode Instead of Explode?
However, some commenters on this analysis do not share Random Crypto Pal’s optimism. One even suggested that XRP’s price may implode rather than explode, with another predicting a crash to $0.15.
As of press time, XRP is trading at $0.5132, still recovering from the weekend dip.