fxs_header_sponsor_anchor

XRP price provides opportunity to reaccumulate before Ripple bulls trigger another 100% rally

  • XRP price shows a massive W-bottom formation that forecasts a 43% breakout move to $0.765.
  • Ripple bulls can extend this run-up to tag March 28, 2022, high at $0.93, allowing the altcoin to double in value.
  • Invalidation of this bullish outlook will occur if the remittance token falls below the $0.422 support floor.

XRP price is among one of the altcoins that shows promise of an explosive move. As noted in the March 18 article, Ripple exploded and hit the targets mentioned. Now, the remittance token pulls back as investors book profits, providing sidelined buyers and hodlers an opportunity to reaccumulate before the next leg.

Read more: Ripple price party not over yet as this entry level can still bring 40% gain going forward

XRP price ready for its next journey

XRP price shed roughly 68% between March 28, 2022, to June 18, 2022, as the bear market raged on. As the remittance token formed a local bottom at $0.287, it attempted a recovery rally but was largely stuck between the $0.532 and $0.336 range for the most part.

On January 2, 2023, XRP price declined sharply to form another local bottom at $0.300. This move was followed by a 95% ascent in the next three months. The most recent rally formed a local top at $0.585, but Ripple is currently in pullback mode.

This price action from March 2022 to March 2023 has led to the formation of a double bottom. The technical formation is noted when the trend shifts from bearish to bullish, and in this case forecasts a 43% upswing of XRP price to $0.765. The target is obtained by measuring the distance between the mid-peak and the second bottom and adding it to the breakout point at $0.532. 

As the altcoin retraces, it provides investors an opportunity to reaccumulate. The best level to buy XRP again is between $0.422 and $0.500. If the trend is strong, the pullback is unlikely to head below $0.422. Hence, a sustained move lower should be cause for concern.

In a highly bullish case, a bounce in this accumulation zone could propel XRP price to tag the range high of the 68% drop at $0.930. This move would constitute a 100% gain for Ripple holders.

XRP/USDT 1-day chart

While the bullish outlook for XRP price might seem overwhelming, it is because the crypto landscape has shifted. The sentiment seemed to have picked up steam, and the alt season narrative has kicked in after Elon Musk briefly changed Twitter’s logo with DOGE’s.

So another 100% upswing for Ripple is not outside the realm of possibility. However, if the macroeconomic situation worsens and the negative effects cause Bitcoin price to tank, then investors need to be cautious. If XRP price swings lower and flips the $0.422 support floor into a resistance level, it would invalidate the bullish thesis.

Such a move would push XRP price back into consolidation mode and could also trigger a 20% crash to $0.336.

Also read: Breaking: Binance CEO Changpeng Zhao discredits rumors of Interpol Red Notice, citing photoshop

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.