TL;DR
Analysts expect a strong rally for XRP in October, with potential new highs.
However, overbought RSI signals a risk of short-term correction.
Bulls Anticipate a Massive Rally
Ripple’s XRP has experienced enhanced volatility since the start of 2024, witnessing major pumps and significant plunges. In the aftermath, though, its current price is roughly the same as the one witnessed on January 1, trading at around $0.62 (per CoinMarketCap’s data).
XRP Price, Source: CoinMarketCap
Some analysts and proponents of the asset believe October will be highly successful. Their prediction is partially based on the fact that it is usually a bullish month during which many leading cryptocurrencies record substantial gains. As such, it is widely regarded in the community as “Uptober.”
Not long ago, the popular X user JackTheRippler forecasted that October will be “a life-changing month” for XRP holders. The analyst argued that the asset could reach a new all-time high in the next 30 days, assuming the SEC doesn’t appeal the Ripple case (among other factors).
The agency has until October 7 to appeal Judge Torres’ decision, which ordered the company to pay a $125 million penalty for violating certain securities laws. Over the past few weeks, there have been increased rumors that the SEC will seek such action. American lawyer Fred Rispoli, for instance, believes the chance for an appeal is 60%.
Other analysts envisioning a short-term rally for XRP include EGRAG CRYPTO and Dark Defender. The former maintained that the token’s Average Sentiment Oscillator (ASO) recently recorded a bullish cross with the price chart. Historically, such developments have been followed by a huge resurgence in XRP’s valuation.
The ASO is a momentum-based technical analysis tool designed to gauge market sentiment by calculating the average percentage of bullish and bearish movements over a certain period.
For their part, Dark Defender thinks XRP will enter a bull run mode once “eliminating” the important resistance level of $0.6649. Recall that its price surpassed that mark a few days ago before retracing back to $0.62.
The Bearish Signal
Despite the optimism shared by the aforementioned analysts, one factor suggests that XRP’s value might plunge soon. This is the Relative Strength Index (RSI), whose ratio briefly soared above 70 in the past few days.
Such high readings indicate that the asset is in overbought territory, meaning it could be headed for a correction. Conversely, when the RSI slips below 30, this might signal a buying opportunity.
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