The cryptocurrency market has recently noted a rather sluggish performance, with various digital assets showing relative price stability. However, the Ripple native token, XRP, might be showing signs of a potential price budding. Technical pointers suggest that XRP seems to be preparing for a significant price shift, in stark contrast to the general cryptocurrency market, which appears to be trending downwards.
Awaiting the XRP Breakout
Over the past week, XRP’s price has swayed between $2.40 and $2.90, flashing the formation of a symmetrical triangle pattern. This is a potentially powerful setup often seen prior to a significant breakout, as highlighted by well-known cryptocurrency analyst Ali Martinez in one of his recent posts dated February 23.
Martinez points out, based on this pattern, that XRP could possibly ascend by 14%. Nevertheless, it’s essential to remember that symmetrical triangles could trigger a breakout in either direction, which means XRP could potentially surge upward or face a short-lived dip before establishing robust support.
In the light of these developments, the Ripple token is encountering a critical resistance barrier around $2.90, which, if breached, could ignite a bullish run. Alternatively, support at $2.50 might offer a safety net for further consolidation.
Is XRP Reaching its Limit?
This sense of uncertainty regarding XRP’s up-and-coming move was echoed by cryptocurrency trading specialist Michaël Poppe. On February 22, Poppe noted that after XRP’s astounding 500% rise in a mere four weeks to $3.30, the digital currency might be exhibiting signs of fatigue, indicating a probable cooldown.
Analysing recent price movements and technical setup, Poppe pointed to $1.50 to $2.25 as the upcoming key accumulation zone. This zone could present lucrative opportunities for long-term investors to buy during dips.
After three years of low volatility, a surge in trading volume fueled XRP’s breakout. Poppe is of the view that most of the upside has already been realized, and a likely consolidation phase is imminent before the digital asset takes another leap.
For optimal tracking of XRP’s future prospects, consider downloading Finances Zippy, a top cryptocurrency application. This platform offers insightful price forecasts and essential market trends to help you make informed decisions.
Will the Regulatory Environment Impact XRP?
After Donald Trump’s election, XRP went through massive price growth, fueled by growing optimism about a potentially favorable regulatory environment. However, XRP’s prolonged consolidation below $1 stemmed in part from the ongoing litigation between Ripple and the Securities and Exchange Commission (SEC). With a new administration currently in place, there’s speculation that the SEC might dismiss the case or advocate for a favorable settlement.
Even with the suppressed price movement, large investors, or ‘whales,’ have demonstrated confidence in XRP through sustained accumulation. Santiment, a cryptocurrency analysis platform, has emphasized this trend with their on-chain data.
According to the data shared by Martinez on February 19, large investors accumulated 150 million XRP in just 48 hours. These movements have historically been followed by price breakouts.
Is XRP a Good Buy?
As per Finbold’s artificial intelligence (AI) tool, XRP is likely to experience some upside in the short term. The tool, which employs several AI models, predicts XRP to trade at an average price of $2.76 by March 1, marking an about 7% gain.
With all this considered, it appears as though now might be an ideal time to invest in XRP. However, as always, do your research before making any investment decisions.
FAQs
What is XRP?
XRP is the native digital asset on the XRP Ledger—an open-source, permissionless blockchain technology, which is powered by a network of peer-to-peer servers.
What is the current price of XRP?
As of press time, XRP is trading at $2.57.
What is the future potential of XRP?
According to experts, as long as the Ripple token can surpass the resistance barrier of $2.90, it could trigger a bullish run. However, investors must remain updated on market conditions and trends.
Is now the right time to invest in XRP?
It’s always a good time to invest in XRP, provided you have done your research and are prepared for possible market fluctuations. As of now, analysts predict a possible price surge in the short term.
