- XRP’s price has dropped below $0.50, sparking fear among investors.
- One analyst has predicted a surge with a “legendary” upside, pointing to a specific technical pattern.
- Can XRP replicate its 2017 performance and offer long-awaited relief to investors?
The price of XRP, the native token of Ripple, has experienced a significant decline in the past 24 hours, falling below the crucial $0.50 support level. This drop comes amidst a prolonged period of consolidation for XRP, which has been trading below $0.60 for some time.
Analyst Sees “Insanely Bullish” XRP Chart Pattern
Despite the bearish sentiment, cryptocurrency analyst Egrag Crypto offered a contrasting viewpoint in a recent analysis. Crypto, in a post on X, suggested that XRP is poised for a surge with “legendary” upside potential.
The analysis predicts a 41% price increase for XRP, with a “macro view” of the token’s chart described as “insanely bullish.” Crypto highlights a specific point on the chart that could be reached with a 41% surge, comparing it to a similar price movement observed in 2017.
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While the exact percentage increase remains uncertain, Fibonacci 1.618 is identified as a potential target for the rally. “In a macro view, the chart below is insanely bullish, and the breakout to the upside will be nothing short of legendary!” stated the analyst.
They added that a 41% price increase would position XRP “on the edge of the triangle,” mirroring the 2017 surge that preceded a significant rise. Egrag Crypto’s analysis also suggests that technical indicators, including Fibonacci targets, point towards inevitable double-digit gains for XRP.
However, the analyst emphasizes the importance of caution and advises investors to implement strong risk management strategies despite the anticipated uptrend. While Egrag predicts a bullish future for XRP, the token’s recent decline coincides with Ripple transferring 200 million XRP tokens to an unknown wallet.
Technical Indicators Show Bearish Sentiment
This has sparked speculation about the token’s future, with some fearing that Ripple may abandon XRP in favor of its own stablecoin. It’s important to note that Ripple has made strides in its business operations despite the ongoing legal battle with the Securities and Exchange Commission (SEC) and XRP’s lackluster performance.
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At the time of writing, XRP is trading at $0.4943, reflecting a nearly 6% correction in the last 24 hours and a 5% decline on the weekly chart.
The token’s technical indicators also paint a bearish picture, with “strong sell” sentiment dominating short-term gauges and a similar sentiment under moving averages. Oscillators, however, remain neutral.
If XRP can replicate its 2017 performance, the anticipated price movement could offer relief to investors concerned about the token’s lagging performance compared to established competitors like Bitcoin (BTC) and Ethereum (ETH).
On the Flipside
- While Egrag Crypto predicts a surge, XRP has a history of failing to meet analyst expectations in recent times.
- Technical indicators for XRP show strong sell signals despite the analyst’s bullish chart analysis. Oscillators, however, remain neutral, indicating some uncertainty.
- The ongoing SEC lawsuit against Ripple casts a shadow over XRP’s future, potentially hindering growth.
Why This Matters
XRP’s price drop below $0.50, despite bullish technical analysis predicting a surge, highlights the ongoing uncertainty surrounding the token. This could impact investor confidence in XRP’s future, especially considering Ripple’s recent token transfer and the SEC lawsuit, but a successful price rise mirroring 2017 could revitalize the XRP market.
If you’re interested in the future of XRP and how the ongoing legal battle between Ripple and the SEC is impacting its price, then this article is for you:
XRP Price Awaits Clarity as Ripple Hangs in Limbo
Curious about the recent buzz around XRP burning by Coinbase and its potential impact on the price? This article explores the details and what it could mean for XRP in the market:
Why Is Coinbase Burning XRP On-Chain? Here’s the Benefit
