Key Insights:
XRP sees an increased potential for a rally after its charts see a potential bollinger squeeze.
A bollinger squeeze typically results in a large rally, one of which caused a Bitcoin rally from $69k to $90k within two weeks.
Bollinger squeezes are rare and can send cryptos into highly bullish rallies.
ETFs and Futures listing could further intensify the rally.
XRP's charts have seen the formation of a potential bollinger squeeze after its volatility dropped significantly after its move above $3. Top chart analyst Ali Martinez shared those charts on X and concluded it could push XRP significantly upwards, probably around $7. This target of XRP is in line with our previous estimates of it hitting $7 in Q1 of 2024.
Lately, XRP has been embroiled in a controversy along with Bitcoin. Riot Platforms VP Pierre Rochard claimed that Ripple was lobbying against Bitcoin Reserves in the US, without much evidence to back the claim. Ripple CEO Brad Garlinghouse responded by saying that it would be better for other cryptocurrencies to be present in the US National Digital Assets Stockpile, which seems to be the direction the US Government is taking.
The US President earlier notified a working group under White House AI and Crypto Advisory Czar David Sacks. This group will explore the formation of a strategic crypto reserve and crypto regulations in the USA.
XRP and Solana have been expecting their ETFs since last year, and their approval appears to be closer than ever. Last week, we saw a CME website indicating a date of 10 February to list the XRP and Solana Futures for trading. This listing has raised the speculation that the ETFs might get approved soon.
An XRP ETF in February is expected to lift its price to $7 or higher. At present, at least 10 XRP ETFs, ETPs, and Trusts are in various stages of application.
ETFs provide capital inflows into the crypto markets and top-grade security to their buyers. This allows buyers to own XRP without going through the trouble of self-custody.
Last year, just before the US elections, a Bollinger squeeze sent Bitcoin from $69k (one of the previous ATHs) to $90k within a couple of weeks.
Bollinger bands usually send cryptocurrencies in a high-magnitude rally, which attracts more buyers and keeps on pushing the prices higher. A similar rally in XRP can easily push it to $10 levels in no time.
XRP has been one of the largest gainers last year with 441% gains, which is the largest among major altcoins. At present, it sits #3 on the list of largest cryptos next to Bitcoin and Ethereum with a price tag of $2.83 at press time.
XRP-USDT 4h Charts
Tradingview
However, this week's market correction has caused XRP to lose 11.5% in price. If it slides more, the bollinger squeeze could fail and as a result, we might see the levels of $2.7 appearing on XRP charts, which is its next support zone.
On the upside $3.14 remains a critical resistance. A rally towards $7 would annihilate Ethereum as the second largest crypto which is already experiencing high FUD.
At VOC, we assume crypto markets have more reason to go upwards than down because of expectations of better crypto regulations, demand surge caused by US government acquisition and accelerated inflow of corporate funds into crypto markets.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.