A certified Chartered Market Technician (CMT) analyst recently shared a chart that talks about this XRP price potential for an uptrend. Based on his predictions important technical indicatorsThe analyst believes that the XRP price rally still has a long way to go before reaching overbought levels.

Technical indicators signal a bullish reversal in XRP price

CMT certified crypto analyst Tony Severino joined X (formerly Twitter) on December 18th. point out the potential for one XRP price is showing a bullish reversal to the upside. The analyst points to the combination of historical technical signals and tightening Bollinger Bands (BB) as an indication of an impending price rally.

The analyst expressed confidence in the XRP price outlook and admitted that he underestimated it bullish potential. He revealed that the quarterly XRP/BTC chart looks exceptionally strong and the three-month candlestick closes above Bollinger Bands Base at 0.00001717, for the first time since April 2019.

Severino announced that XRP price had touched the upper Bollinger Band at $0.0000286, a critical level usually associated with significant bullish momentum. According to the analyst, a quarterly close above this upper limit could serve as a tipping point Buy signal for XRPand emphasizes that the Bollinger Bands are currently at their tightest levels in XRP/BTC history.

In addition to this development XRP’s Relative Strength Index (RSI) on the three-month chart is at 47.87 and is steadily moving towards 50 after breaking its RSI-based moving average at 43.44. Severino noted that an RSI above 50 often indicates increasing strength in a cryptocurrency, and in the past some of the largest price moves have occurred with an RSI above this level.

The analyst further revealed that XRP Fisher transform is bullish. This technical indicator is used to detect price fluctuations and trend reversals in cryptocurrencies. According to Severino, XRP’s Fisher transformation turned positive after a multi-year result bullish divergencefurther strengthening its potential for a price rally and an optimistic outlook.

Momentum oscillators suggest a longer uptrend

In addition to his technical indicators, Severino has discovered that momentum oscillators such as the Logarithmic Moving Average Convergence Divergence (LMACD) and Stochastic Oscillator suggest a possible price rally for XRP. Currently, the bearish momentum for XRP’s LMACD is weakening and is steadily approaching a bullish crossover for the first time on the XRP/BTC chart. This crucial shift suggests that a possible trend reversalsignaling an extended uptrend for XRP price.

Now it is Stochastic Oscillator at the %K line has reached its highest value of 71, indicating a potential for a strong rise continued upward momentum. The technical indicator also shows that XRP still has a long way to go before it enters overbought territory. According to CoinMarketCap, at the time of writing, XRP price is $2.36, down 6% from its previous price of $2.5 in the last 24 hours.

Featured image created with Dall.E, chart from Tradingview.com