More fluctuations incoming: is this the final straw before institutional demand reflects on XRP’s price charts?
Despite Ripple clearing regulatory hurdles, XRP’s performance in the past few months has been sloppy. From the current all-time high of $3.65, the downward slope has formed a bearish top pattern.
According to Chart Nerd’s analysis posted on Saturday, the latest XRP coin price movements confirmed a third bounce from the same deep liquidity pocket, serving as a major support area during dips.
XRP’s Move: Golden Cross Or Dip Below $1.55?
With the Bollinger Bands (BOLL) falling in line with this theory of incoming volatility, an upwards breakout would tackle $2.80, a resistance level unseen since early October. For that to happen the falling wedge has to soak up the wick drop, keeping XRP’s price above $1.55.
April & October wicks are building the base for this downwards scenario, but the critical bullish falling wedge structure is still in play. The seasoned trader also named the massively oversold condition on the Stochastic Relative Strength Index (StochRSI) as a major catalyst.
“We could be looking at a Golden Cross in the next couple of weeks”, noted Chart Nerd. On the other hand, Bitcoin’s (BTC) momentum continues to be the key driver of market turbulence, so BTC’s $90K support reclaims will be crucial in determining Ripple’s (XRP) short-term mood.
XRP’s Bollinger Bands Scream Price Volatility
Notably, the Bollinger Bands suggest an XRP breakout could swing both ways, not necessarily upwards. In a bearish scenario, XRP’s price could form a new yearly low if the OG altcoin drops the support level roughly located at $1.55. In the inverse scenario, the bull target is located around $2.80 in the near-term if it breaks the red-label Bollinger Band (BOLL) at roughly $2.20.
In crypto slang, such a situation is considered a “paper-hands purge”, as institutional demand grows while retail panics. For institutional crypto players, Ripple’s exchange-traded funds (ETFs) collectively garnered $1.14 billion since inception, a growth speed unseen since Ether’s ETF debut, judging from SoSoValue’s real-time Wall Street market data.
However, Bitcoin’s (BTC) recent downturn to $85K has impacted Wall Street confidence in the sector, resulting in slower inflows for Ripple-based exchange-traded funds on the traditional stock markets. Pending a banking license in the United States (USA), Ripple’s institutional reach could reduce the damage done by the unfavorable price correlation.
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