TLDR
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- Analyst Ali Martinez notes that the SuperTrend indicator on the 12-hour chart of XRP/USDT has turned bullish
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- The last time this happened, XRP price rose 470%
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- SuperTrend is an ATR based trend following tool that provides buy/sell signals
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- A bullish flip occurs when the indicator falls below the price, signaling a possible uptrend
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- Another analyst predicts that XRP could reach $3 based on technical analysis
Despite the recent sideways movement in the token price, crypto analysts expect bullish signals for XRP based on key technical indicators.
Popular analyst Ali Martinez (@ali_charts on Historically, this pattern has preceded large price increases for XRP.
“The last time the SuperTrend indicator turned bullish on the 12-hour chart, XRP was up 470%,” Martinez noted in a post on X. “It just turned bullish again.”
Developed by Olivier Seban, the SuperTrend indicator helps traders identify the prevailing market trend by dynamically adjusting to volatility. It uses the Average True Range (ATR) with a multiplier usually set to 3 to draw a line above or below the price. The indicator changes position when the price crosses these levels.
A bullish flip, as seen on the XRP chart now, occurs when SuperTrend breaks below price, indicating a potential uptrend is forming. Conversely, a downtrend occurs when the indicator rises above the price.
If history repeats itself, XRP could be on the cusp of a major rally. The last time SuperTrend issued a buy signal on the 12-hour time frame, XRP was up nearly 500% before the rally stalled.
However, technical indicators alone do not guarantee future price developments. Fundamental factors such as regulatory developments, acceptance and general market sentiment also play a key role in the development of XRP.
Other analysts also see bullish potential for XRP based on their analysis of the charts. One prediction circulating is that XRP could target a rise to $3.00 if it manages to break through key resistance levels in the near term.
At the time of writing, XRP is trading at $0.71, up about 1% in the last 24 hours. The sixth-largest cryptocurrency by market capitalization has largely traded sideways in recent weeks as the broader crypto market remains volatile.
XRP got a big boost in September 2022 when it was announced that Ripple, the company closely linked to the token, had won a partial victory in its ongoing legal battle with the US Securities and Exchange Commission (SEC). However, the full resolution of this case is still pending.
In the short term, traders see $0.75 as a key level for XRP to reclaim and open the door for a rise. On the other hand, a fall below the support level around $0.65 could increase selling pressure.
