XRP Poised for Explosive Growth—Analyst Predicts a 470% Increase Ahead

As Bitcoin continues to surge beyond the $110,000 mark, a prominent crypto analyst raises concerns over what might be XRP’s most significant breakout in years.

Could XRP See a 470% Surge Again?

In a market analysis released on May 22, an analyst tracking the inverse relationship between Bitcoin and the dollar index shared insights with followers on XRP nearing a pivotal moment in its historical trends. By examining technical indicators and liquidity data, they suggested that XRP may replicate a breakout reminiscent of late 2020, which previously resulted in a notable 470% increase within just 28 days.

“Bitcoin has reached its all-time peak,” the analyst noted at the video’s outset. “It’s crucial to focus on what’s coming next.” They then shifted attention to XRP, which seems to be setting up in a manner similar to the conditions preceding its fivefold increase.

The analyst underscored a “significant range breakout” on XRP’s chart that, historically, has indicated the initiation of altcoin season. “This is the zone where XRP outshined the broader market,” they remarked, referring to a significant period starting November 5, during which XRP climbed from $0.50 to over $2.70.

Further Insights

They pointed out that XRP’s past performance excelled right after Bitcoin managed a clean break above its resistance, particularly during a fall in Bitcoin dominance—a measure of Bitcoin’s share of the total cryptocurrency market capitalization. “This drop corresponded with XRP climbing from 50 cents to $2.70, eventually reaching $3.30,” the analyst explained, emphasizing that they are now on the lookout for similar signals again.

The potential bullish trend for XRP depends on certain key technical indicators aligning. They highlighted a possible bullish divergence forming on the RSI (Relative Strength Index) for both XRP/ETH and XRP/BTC pairings, suggesting that bearish momentum may be diminishing, even as prices retract. “This indicates that while the price might be declining, the downward momentum is waning,” they described.

Further Insights

The analyst also stressed the necessity of closing above specific resistance points, especially $2.43 and $2.60, to validate the beginning of a fresh upward trend. “Achieving a solid daily close would be crucial… then we’d be aiming for $2.60. If we surpass that, it confirms a new higher high and higher low pattern,” they elaborated, noting that the next significant resistance is seen between $3.00 and $3.40, after which price discovery could commence.

An Altcoin Surge on the Horizon

Beyond XRP, the analyst cautioned about overall market conditions that could lead to a rotation into altcoins. “We’ve observed an increasing number of traders attempting to short at local peaks. This trend may push prices higher,” they elaborated. Rising short positions above current levels indicated a phenomenon known as “pain liquidity,” which might trigger sharp upward price movements.

Although Bitcoin has started the rally, the analyst sees altcoins ready to follow suit, with Ethereum already indicating signs of a downturn. “We want Bitcoin dominance to maintain while prices rise,” they added, “and then for liquidity to shift towards altcoins.”

Nevertheless, the analyst urged patience. “Today is a day for excitement, not for hasty investments,” they cautioned. “That’s why I’ve been advising all year to seize buying opportunities,” they remarked, whether in XRP, ENA, or another crypto. “The conditions are ripe.”

At the time of reporting, XRP was valued at $2.445.

Featured image created with DALL.E, chart from TradingView.com