XRP set for significant upside potential as historical trend likely to repeat
In the past 24 hours, XRP has encountered a significant drop, breaking through the important $0.50 support level. Keeping the price above $0.50 was crucial for XRP to break free from the extended consolidation below $0.60. Amid the prevailing bearish sentiment, cryptocurrency analyst Egrag Crypto, in a detailed analysis shared on X (formerly Twitter) on June 7, suggested that XRP is on the verge of a potentially ‘legendary’ upside potential.
According to the analysis, XRP could potentially see a 41% increase. A closer look at the token’s chart reveals a macro view described as “insanely bullish.” The analysis emphasized the need for a 41% surge in price to reach a critical point on the chart, drawing parallels to a similar increase observed in 2017. While the exact percentage increase couldn’t be determined, Fibonacci 1.618 was identified as the ultimate target for the rally.
“In a broader perspective, the chart below shows an insanely bullish trend, and breaking out to the upside will be nothing short of legendary!,” the expert stated. “We need a 41% surge to be on the edge of the triangle. In 2017, we saw a similar 41% increase, and then Valhalla awaited us.”
Additionally, the analysis indicated that measured moves and Fibonacci targets point towards inevitable double-digit gains for XRP. Despite anticipating a significant uptrend, the analyst advised caution, urging investors to implement strong risk management strategies.
Behind XRP’s sharp decline, several factors are at play amidst the bullish prediction. XRP’s recent sharp drop coincided with Ripple transferring 200 million XRP tokens to an unknown wallet, leading to speculation about the token’s future. Speculation about Ripple potentially moving away from its native token in favor of launching its stablecoin has also circulated.
Despite XRP’s lackluster performance and ongoing legal uncertainties with the Securities and Exchange Commission (SEC), Ripple has achieved significant milestones in its business operations. For instance, the recent partnership with Clear Junction aims to enable instant and secure GBP and EUR-denominated payouts for Ripple’s payment customers.
As of the latest update, XRP was trading at $0.49, having corrected by nearly 7% in the past 24 hours and showing a 5% decline on the weekly chart. Technical indicators for XRP reflect a bearish sentiment, with a ‘strong sell’ sentiment dominating the one-day summary and a similar sentiment under the moving average, while oscillators present a ‘neutral’ stance.
In conclusion, if XRP mirrors the movement seen in 2017, the expected price action could alleviate concerns among investors about the token’s failure to keep pace with established peers like Bitcoin (BTC) and Ethereum (ETH).
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