The Ripple Effect: 5 Key Factors Behind The 100% XRP Surge

Tony "The Bull" Severino

1 year ago

3 mins read

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After spending three years of the crypto bear market as the butt of all jokes, being compared to sheep manure, and much more, XRP has shocked the entire industry with a 225% single-month explosion. But the powerful breakout could only be just beginning, according to a variety of technical indicators that measure the strength of the movement.

Here are five factors behind the breakout and why the move is more than likely sustainable.

XRP Taps Nearly $1 On Coinbase, Breakout Is Only Just Beginning

During the early morning hours, the third-ranked cryptocurrency pushed to a peak price of over 90 cents per token at the high on Coinbase.

The cryptocurrency began the month trading at the low end of 20 cents, more than tripling in value from low to current levels.

The disbelief rally began following Ripple revealing it was buying back XRP, and news circulating about the upcoming Spark token airdrop.

And while XRP has moved so much so quickly, technicals suggest that the rally has legs and is only just starting. The chart below shows exactly where the altcoin called Ripple could be in terms of its market cycle.

The RSI is in bull market zone with room to grow, and the MACD has flipped bullish | Source: BTCUSD on TradingView.com

The Relative Strength Index on weekly timeframes has broken into bull market territory, in which it has only reached three times prior.

The first time there was such a bullish impulse, the rally kept going until nearly 900% ROI was reached. Weekly RSI reached as high as a reading of 95, pointing to extremely overbought conditions.

The Ripple rocket is only at 88 currently, suggesting that there is plenty of room to grow during bullish impulse one of three. The chart above also shows the MACD only just now breaking up. The lagging momentum indicator adds credence to the theory that an extended rally is here.

The Ripple Effect: Why The Bullish Impulse Is Only Getting Started

With the RSI in bull market territory and room to run, and the MACD only just now flipping bullish, that still leaves two more significantly bullish factors to examine in Ripple.

The Bollinger Bands also back up the idea of a massive bull breakout | Source: BTCUSD on TradingView.com

On weekly XRP charts against the dollar, the altcoin has also reached the top of the Bollinger Bands after making it through the middle-line. This also occurred during the last bull breakout, which ultimately led to a 34,000% increase less than one year later.

The Bollinger Bands also mimic the signal provided by the Ichimoku cloud. Once XRP made it through the cloud the last time around, it was off to the races for Ripple bulls.

The Ichimoku indicator also supports an extended bull trend | Source: BTCUSD on TradingView.com

Now that XRP is back above the cloud on weekly timeframes, the sky is no longer the limit, and the altcoin known as Ripple could soon head out of orbit completely.

Featured image from Deposit Photos, Charts from TradingView.com

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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