3 Big Indicators Point to Massive XRP Run

As the legal skirmish between Ripple and the SEC draws to a close, XRP price actions have caught the eye of crypto market analysts, with recent evaluations suggesting a potential surge in value.

Mickle, a prominent crypto YouTuber and market analyst, recently examined XRP’s price movements and called attention to three indicators that spell out an optimistic future for XRP once the Ripple vs. SEC case comes to a final close.

XRP in a Consolidation Pattern

In his recent analysis, Mickle confirmed that XRP has been trading within a massive consolidation pattern, a common preparatory phase for cryptocurrencies before making significant price moves. 

According to him, this consolidation is likely to conclude in tandem with the end of the SEC vs. Ripple case. Historically, similar alignments have resulted in substantial volatility and price increases for XRP as investors and traders respond to newfound regulatory clarity.

For context, when judge Analisa Torres ruled last July that XRP in itself is not a security, investors trooped into the market, triggering a massive demand surge. This spike in demand led to a substantial price run, with XRP skyrocketing to a high of $0.93 on July 13.

Despite the subsequent retracement in the weeks that followed, the earlier surge demonstrated the impact of a pivotal ruling in the case. As pundits expect another crucial ruling, the placement of the current consolidation endpoint further bolsters the latest bullish outlook.

The placement coincides with a critical juncture in broader crypto cycles, where major assets, including Bitcoin, are reaching all-time highs, and altcoins are breaking out. This sync of market behavior and individual asset milestones can amplify price movements.

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XRP Bollinger Bands and Performance against Bitcoin

In addition, Mickle called attention to a second indicator on the XRP weekly chart that supports the bullish outlook, the Bollinger Bands. These bands are a technical analysis tool used to gauge market volatility and potential price breakouts. 

Presently, XRP’s Bollinger Bands are showing a squeeze—a condition typically followed by significant price movements. Mickle highlighted previous instances in 2017 and 2020 where similar squeezes in XRP’s bands led to rallies of 32,000% and 10,000%.

The third indicator, as pinpointed by Mickle in his latest analysis, has to do with XRP’s performance against Bitcoin. Charts indicate that XRP is entering a zone historically followed by exponential runs against Bitcoin, a pattern observed several times over the past decade. 

Each entry into this zone has been preceded by a consolidation period against Bitcoin, lasting about 60 to 70 days, after which XRP experienced substantial gains in value relative to Bitcoin. 

Macroeconomic Effects

Mickle’s commentary also extended to the macroeconomic factors influencing the crypto market. He discussed the impact of current high interest rates set by the Federal Reserve, which have been suppressing risk asset investments. This trend has contributed to the ongoing market collapse.

However, he asserted that the Fed is likely to pivot due to economic pressures, including significant losses from high rates, amounting to $114 billion last year. Mickle expects an imminent reduction in interest rates, which could catalyze a risk-on environment conducive to investments in cryptocurrencies like XRP.

Should the SEC litigation, currently in the remedies phase, conclude favorably for Ripple, the removal of this significant overhang could trigger the conditions ripe for a major XRP rally. Such a rally would be further bolstered by a confluence of these factors. Notably, XRP currently trades for $0.4903 as of press time.