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A prominent market watcher expects XRP to breach its all-time high soon, and insists XRP holders could become some of the richest investors.
Notably, XRP has gained attention following its remarkable surge in November. The asset climbed from $0.51 in early November to a peak of $2.90 on Dec. 3, marking a 464% increase in just one month.
However, following this peak, XRP faced a pullback as it pushed for $3. Despite consolidating between $2 and $2.60 for two weeks, analysts like Steph believe an even more explosive rally is in sight. He believes such a rally could make XRP holders “the richest people you know.”
XRP Bollinger Bands Suggest Breakout
In his analysis, Steph called attention to important indicators, including the Bollinger Bands on the 4-hour chart. The Bollinger Bands, which track volatility, are now expanding—a pattern that often leads to major price movements.
Notably, the market watcher confirmed that in November, when the Bollinger Bands expanded similarly, XRP experienced a 132% surge from its swing low to its swing high.
Other notable movements included a 53% and a 120% rally during similar patterns. According to Steph, the current expansion suggests XRP could be on the verge of another major breakout.
XRP Stages Bull Flag Breakout
Meanwhile, Steph confirmed that XRP has already broken out from a bullish flag pattern on the daily chart. This development often indicates that the upward movement could continue after a period of consolidation.
The breakout was confirmed by multiple daily closes above a long-term resistance line. Interestingly, XRP is now holding above $2.33, a crucial support level. However, a failure to maintain this level could invalidate the bullish trend, but as long as the price stays above it, the outlook remains optimistic.
Steph then called attention to $2.60 as a key resistance. He noted that a daily close above this level would confirm the breakout further. The analyst’s target for the ensuing uptrend rests between $4.90 and $5 in the short-to-mid term.
The Exponential Moving Average (EMA) ribbons on the daily chart support this bullish outlook. XRP retested these ribbons on Dec. 10, bouncing back strongly. This suggests the trend remains intact, providing additional support for the $5 price target.
Bitcoin Dominance Favorable for Altcoins
In addition, Steph also highlighted Bitcoin dominance, which measures Bitcoin’s market share relative to other cryptocurrencies. He suggested that the prevalent trend from this metric is actually bullish for altcoins like XRP.
On the weekly chart, Bitcoin dominance has been declining since breaking below a rising wedge pattern. Currently, dominance is testing the breakdown level near 59%. As long as it remains below this threshold, conditions appear favorable for XRP and other altcoins.
Steph notes that Bitcoin dominance could fall to the 47–50% range, a strong support zone historically tested in July 2021 and October 2021. A decline to this area would likely trigger the altcoin season, potentially pushing XRP toward its $5 target.
Steph advised caution as Bitcoin dominance approaches the 47–50% support zone. This area could mark a turning point, making it a level for investors to consider locking in profits. However, for now, the analyst believes XRP and other altcoins remain in a strong position. XRP currently trades for $2.5, down 0.12% in the past 24 hours.