The famous crypto analyst EGRAG Crypto has revealed a new XRP price prediction, introducing the community to a little-known indicator, the “Average Sentiment Oscillator” or ASO. Commenting on its importance, EGRAG MEAN on Twitter today: “Exciting ASO Update Alert! Check out the post from September 9 to witness the impressive rise and curve of the strong trend! The momentum is on fire, with an unstoppable surge towards the desired powerful cross! #XRParmy, CHANCE! The imminent ASO bullish cross is the spark that will ignite the upcoming XRP bull run!”
Here’s When The Next XRP Bull Run Could Begin
From the chart presented by EGRAG, the convergence of the blue line (representing bulls) and the red line (representing bears) can be seen. By marking a yellow box on this chart, EGRAG expects a strong crossover to appear between the end of 2023 and the beginning of the second half of 2024.
Historical data reveals that XRP has already undergone this strong crossover on two previous occasions. The first, in 2017, witnessed a meteoric 55,000% increase in the price of XRP. The subsequent event, from late 2020 to April 2021, saw XRP appreciate by an impressive 1500%. EGRAG highlighted the scale of the current situation by noting the presence of the “biggest jaw” ever, leading to speculation that the following XRP rally will dwarf the previous one.
The September EGRAG update brought many insights, highlighting the remarkable shift in ASO and the building of undeniable momentum towards the strong cross. In his words, “there is an undeniable strong build towards the desired strong cross.”
First, EGRAG outlined the incredible potential of the oscillator in March, describing it as a harbinger of a monumental bullish setup, showing the depth of market volatility and the contrasting strength/weakness of an asset. He emphasized, “The Mother of all #Bullish Set-Up is upon us,” pointing to the impressive setups building on the 3 Weeks Time Frame (TF) and Monthly TF.
A Deep Dive In ASO
The ASO serves as a momentum oscillator, which provides a percentage average of bull/bear sentiment. This tool is recommended for accurately measuring sentiment during a specific candle period, helping to filter trends or determining entry/exit points.
Conceptualized by Benjamin Joshua Nash and adapted from the MT4 version, ASO uses two algorithms. While the first algorithm evaluates the bullish/bearish nature of individual bars based on OHLC prices before averaging them, the second one assesses the sentiment percentage by considering a group of bars as one entity.
ASO shows Bulls % with a blue line and Bears % with a red line. The dominance of sentiment is represented by the long line. A crossover of the 50% centerline indicates a power shift between bulls and bears, offering a potential entry or exit point. This is especially effective when the average number is important.
Additional insights can be gained by observing the strength of trends or changes. For example, a blue peak surpasses its red predecessor. Any divergence, such as a second bullish peak registering a decrease in oscillator strength but an increase in the price chart, is clearly visible.
By setting the thresholds at the 70% and 30% marks, the oscillator can act similarly to the Stochastic or RSI for trading at overbought / oversold levels. As with many indicators, a shorter period provides advanced signals while a longer period reduces the possibility of false alerts.
At press time, XRP was trading at $0.5097.
Featured image from ShutterStock, chart from TradingView.com