As a seasoned crypto investor with scars from more than a few market cycles etched into my psyche, I find myself looking at the XRP price with cautious optimism. The recent surge and subsequent dip is reminiscent of a rollercoaster ride, one that I’ve been on many times before.
Last week, the price of XRP saw a significant bounce back, peaking at a seven-month high of $0.665 on Sunday. This upward trend was mainly fueled by a general market upturn and further boosted by anticipation surrounding Bitwise’s application for an XRP-based exchange-traded fund (ETF), which they filed earlier this week.
Despite an initial burst of excitement, the momentum for XRP soon waned. Following the U.S. Securities and Exchange Commission’s (SEC) decision to contest a partial win by Ripple, the blockchain payments firm connected with XRP, its value has dropped by approximately 12% over the past week.
XRP Price Strength During Legal Battles
The SEC’s recent appeal has caused waves within the cryptocurrency world, sparking worries about the long-term outlook and regulatory standing of XRP. However, market analyst Bobby A addressed these fears in a recent social media post, suggesting that the overall market trends do not predict an extended downturn for XRP prices as a result of the appeal.
Rather than suggesting these occurrences typically result in lost chances for “hasty or unknowledgeable investors” who might act on reflex to market updates, Bobby A posits that although temporary hurdles exist, this token could maintain its growth trend over the next few months.
The expert notes that XRP‘s price has demonstrated remarkable strength amidst regulatory hurdles. In fact, even during the SEC lawsuit initiated in 2020, XRP managed to climb from $0.11 to a high of $1.95, defying substantial legal obstacles.
Bobby A underscores the fact that the value of XRP has essentially remained stable within a range over almost seven years, suggesting a robust long-term foundation potentially setting the stage for increased valuation in the future.
No Indications Of A Bear Market
Bobby A points out from a technical standpoint that the monthly charts of XRP‘s price show significant trends. In line with Bitcoin‘s Halving events, XRP has often seen dramatic price increases during shifts in momentum indicators. This pattern, which was noticeable in past years, such as 2017 and 2020, is reminiscent of historical trends.
As an analyst, I find it noteworthy to mention that the Bollinger Bands, a tool used to gauge market volatility, are presently at their narrowest points in XRP‘s history. This expert opinion suggests that such tight Bollinger Bands may herald substantial price movements. However, these initial shifts can sometimes be misleading, as they might initially confuse market participants due to their deceptive nature.
Bobby A contends that the present market situation should not be mistakenly perceived as the onset of a bear market. Instead, he posits that XRP could experience a significant drop in price, reaching undervalued regions, often referred to as “deep value areas.” With clear legal grounding, a practical application, and the upcoming ETF, he anticipates widespread adoption of XRP due to its established use case and potential for mass acceptance.
Ultimately, the market analyst highlighted the upcoming U.S. presidential election as a potential key factor influencing XRP‘s future trajectory. Bobby hypothesized that if Donald Trump wins re-election, it might instigate substantial changes within the SEC, possibly easing some of the regulatory hurdles that have been problematic for this asset.
At the time of writing, XRP is trading at $0.522, up 0.6% over the past 24 hours.
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2024-10-05 11:10