Ripple price has held steady this week as crypto analysts predict a big comeback in the coming days.
Ripple (XRP) was one of the top-performing cryptocurrencies on Tuesday as traders focused on the Bitcoin movements by the US government. Data by Arkham showed that the government moved Bitcoin worth $2 billion into a custodial account.
Therefore, Bitcoin price retreated from $70,000 to $66,000 as these movements brought memories of the recent selling by the German government, which liquidated coins worth $5 billion this month.
The US is a bigger Bitcoin holder than Germany. Data shows that the Federal government holds over 220,000 coins valued at over $15 billion. As such, a move to liquidate these coins would have an impact on the crypto market.
Some crypto traders are extremely bullish on Ripple, a coin that has been a top laggard in the past few years. XRP is down by 12% in the past 12 months while Bitcoin (BTC) and Ethereum (ETH) rose by 127% and 80%, respectively.
In an X post, Tony Severino, a crypto trader, noted that Ripple’s monthly Bollinger Bands have moved to their tightest level in years. The last time the bands were that tight, XRP price rose by 6,000%.
Bollinger Bands are popular trend indicators made up of three lines. The middle one is the asset’s moving average while the other two are its standard deviations. In most cases, an asset makes a breakout or breakdown after remaining in a tight range for a while.
Meanwhile, Sheldon The Ripper, another trader with almost 500,000 followers on X, noted that the coin was ripe for a ‘mega breakout.’ As shown below, he argued that the token had retested a descending trendline on the weekly chart.
XRP price forms a golden cross
These XRP predictions concur with what crypto.news reported last week. In that article focusing on the daily chart, we mentioned that it was close to forming a golden cross pattern, where the 200-day and 50-day exponential moving averages converge. That pattern formed on Tuesday.
Additionally, the XRP price retested the crucial resistance point at $0.6370, its highest point since March. A clear break above that level will likely lead to more gains as buyers target the key resistance point at $0.7470, its highest level this year, which is about 20% above the current level.