- 2017 Growth and Current Conditions
- Technical Indicators of Potential Growth
- Reduced Supply on Exchanges
Some analysts predict a significant rise in XRP's price, comparing current market conditions to similar ones in 2017. A reduced supply of XRP on exchanges might provide support for price increases.
2017 Growth and Current Conditions
Ripple XRP has shown quite a wobbly performance as of late, with its value plunging by 7% on a two-week scale. It reached a local bottom of around $0.50 before recovering some of the losses and rising to the current $0.53 (per CoinGecko’s data). Some analysts believe an explosive price growth might soon replace the negative trend. The X user EGRAG CRYPTO claimed XRP could experience a repeat of the 2017 pump. Back then, its valuation skyrocketed from a mere $0.25 in December 2017 to an all-time high of $3.40 just a month later (a 1,250% increase). A similar bull run nowadays would result in a new peak of approximately $7.20. "XRPArmy STAY STEADY. The upcoming euphoric phase will be known as the XRP MEGA PUMP. Get ready," EGRAG CRYPTO added.
Technical Indicators of Potential Growth
Earlier this week, The Great Mattsby argued that XRP’s monthly Bollinger Bonds keep squeezing and are now “way tighter than 2017.” This technical indicator, developed by John Bollinger in the early 1980s, helps traders identify when an asset may be overbought or oversold, thus spotting potential reversal points. Tightening the bands means XRP has experienced relatively low volatility for a prolonged time and might be headed for a huge rally (or correction). It is worth noting that historically, this development has resulted in a price movement to the upside.
Reduced Supply on Exchanges
The declining supply of XRP on cryptocurrency exchanges should also be mentioned when speculating about the asset’s possible future market dynamics. As CryptoPotato recently reported, the number of tokens held on trading venues dropped to a seven-month low. Such a change generally indicates that investors might have shifted from centralized platforms toward self-custody methods, resulting in reduced immediate selling pressure.
Reduced supply of XRP on exchanges and tightening Bollinger Bands might signal a potential upcoming rally for the token. Time will tell if XRP can replicate the success of 2017.
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