3 Important Indicators Point to a Huge Uptrend for XRP

As the legal dispute between Ripple and the United States Securities and Exchange Commission (SEC) draws to a close, XRP price action has caught the attention of crypto market analysts, with recent assessments suggesting a potential surge in value is on the horizon.

Mickle, a well-known crypto YouTuber and market analyst, recently analyzed XRP’s price action and focused on three indicators that bode well for XRP’s future after the Ripple vs. SEC case is finally concluded.

XRP is in consolidation mode

Mickle determined in his recent analysis that XRP has been trading within a huge consolidation pattern, a common preparatory phase for cryptocurrencies before making major price moves.

According to him, this integration may coincide with the conclusion of the SEC vs. Ripple case. Historically, similar structures have led to significant volatility and price increases when new regulatory clarity is obtained, and investors and traders react to it.

For example, when Judge Analisa Torres ruled last July that XRP itself was not a security, investors flooded into the market, sparking a huge surge in demand. This surge in demand led to a massive price increase, with XRP surging to a high of $0.93 on July 13.

Despite a pullback in subsequent weeks, the early surge showed the impact of key rulings in the case. The current location of the consolidation endpoint, as experts anticipate another key ruling, further supports the latest bullish view.

This position aligns with key moments in the overall cryptocurrency cycle, including major assets such as Bitcoin reaching all-time highs and smaller market cap coins breaking out. The synchronization of market actions and individual asset milestones can amplify price movements.

XRP Bollinger Bands and Performance Against Bitcoin

Additionally, Mickle looks to a second indicator on XRP’s weekly chart that supports the bullish view, namely the Bollinger Bands. These bands are a technical analysis tool used to measure market volatility and potential price breakouts.

Currently, XRP is experiencing a squeeze in its Bollinger Bands, a situation that is usually followed by major price moves. Mickle pointed out that similar squeezes occurred in 2017 and 2020, and the price of XRP increased by 32,000% and 10,000% respectively during this period.

The third metric is what Mickle pointed out in his latest analysis, and it has to do with XRP’s performance relative to Bitcoin. The chart shows that XRP is entering a zone of exponential growth that has been observed many times over the past decade.

Each entry into this zone was preceded by about 60 to 70 days of consolidation against Bitcoin by XRP, followed by a significant increase in value relative to Bitcoin.

Macroeconomic impact

Mickle’s comments also touched on macroeconomic factors affecting the crypto market. He discussed the suppressive effect that high interest rates currently set by the Federal Reserve have on investment in risky assets. This trend has led to the current market crash.

However, he asserted that the Fed may adjust its policy because of economic pressures, including huge losses (to the tune of $114 billion) caused by high interest rates last year. Mickle expects lower interest rates to be imminent, which could spark a venture capital environment that is favorable for investing in cryptocurrencies like XRP.

If the SEC lawsuit, which is currently in the compensation phase, turns out in Ripple’s favor, removing this major suspense could trigger conditions to be right for a major XRP rally. Such a rebound would be influenced by a combination of these factors. Notably, XRP is trading at $0.4903 at press time.

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