A CMT (Chartered Market Technician) analyst thinks the XRP price is poised for a significant climb. He’s looking at several key indicators that suggest there’s plenty of upward potential left.
Technical Signals Point to a Bullish Reversal
Analyst Tony Severino recently tweeted about XRP, highlighting some promising technical signals. He’s focusing on the Bollinger Bands (BB) – a tool used to measure price volatility – and some historical patterns.
Severino was surprised by XRP’s strength. He noted that the three-month XRP/BTC chart looks incredibly strong, closing above the Bollinger Bands for the first time since 2019. He also pointed out that XRP briefly touched the upper Bollinger Band, a key level often associated with big price increases. A close above this band could be a strong buy signal, especially since the bands are currently tighter than ever before.
Another indicator, the Relative Strength Index (RSI), is also looking good. It’s at 47.87 and heading towards 50. An RSI above 50 usually means the price is getting stronger, and historically, some of the biggest price jumps have happened when the RSI was above this level.
Severino also mentioned the Fisher Transform, a tool that helps spot price reversals. It’s showing a bullish signal after a long period of divergence, further supporting the idea of a price rally.
Momentum Indicators Show Extended Upside Potential
Severino isn’t relying on just one or two indicators. He’s also looking at momentum oscillators like the Logarithmic Moving Average Convergence Divergence (LMACD) and the Stochastic Oscillator. Both suggest potential for further price increases.
The LMACD’s bearish momentum is weakening and is close to a bullish crossover for the first time on the XRP/BTC chart. This is a big deal, as it could signal a significant trend reversal.
The Stochastic Oscillator is also showing strength, hitting a high of 71. This suggests strong upward momentum, and XRP is still far from being “overbought” (meaning the price has risen too quickly and might soon fall).
Despite all this positive analysis, it’s worth noting that at the time of writing, XRP’s price was down slightly. However, the analyst’s overall outlook remains bullish.
