Ripple's native token looks like it is poised for a potential leap in price. In the last two weeks, the turbulence in the market has placed XRP at around $0.54, but recent development puts analysts and investors on the speculative edge.
Why
Perhaps one of the most influential reasons for this fresh wave of optimism that is developing could be from the technical analysis of the XRP price chart.
Some analysts have noted the breakout from a falling wedge, which is usually a precursor to an upward price movement. This, on September 2, has been used to make predictions that XRP could reach as high as $0.63 soon.
But that is not all.
Some analysts draw similarities between the present performance of XRP and its performances back in 2017-2018. For those who remember, that was the period before a serious bull run that saw XRP soar to new heights. If history repeats itself, then we might be at the threshold of watching XRP fly to heights that have not been seen in more than half a decade.
The prolonged legal battle between Ripple and the U.S. SEC has remained one of the key drivers in XRP's market dynamics.
Recent news related to the case has been largely positive for Ripple, as it would result in a far smaller fine against the company than what was initially proposed by the SEC. These developments have sparked speculation of a potential settlement between both parties, an outcome that could remove the major cloud of uncertainty overhanging XRP.
Surprisingly enough, market sentiment for XRP is still bullish despite some volatility in the price action of Bitcoin, the largest cryptocurrency by market capitalization. Resilience in investor confidence toward the prospects of XRP in the long run speaks volumes. Some analysts even go as far as to say that after Ripple finally puts its legal troubles behind, the price could rally "parabolically.".
The Bollinger Bands
One of the more interesting technical indicators that seems to be catching the eye of traders is the Bollinger Bands. Showing a notable squeeze, this tool has served to define periods of low volatility that normally precede significant price movements in XRP. What it all means in simple terms is that XRP has been trading in a pretty tight range for quite a while. A big move could be coming that either up or down.
Some analysts say that the tightening of those Bollinger Bands has led them to believe that XRP might be building up for a move toward a new all-time high. Such predictions should not be taken without a grain of doubt, but it is a hyped time for the XRP community.
Worth noting as always is that the cryptocurrency market can be unpredictable, and XRP is no exception. While there are already indications of upside, the investors should also be prepared for the sudden shift in the market.
Posted Using InLeo Alpha