There is so much going on for Ripple as a currency and a project.
On the one hand, Ripple holders are firm believing prices won’t capitulate as it has in the last two weeks. It was climactic in the previous week.
The XRP Meltdown
Let’s quantify this draw-down.
Week-to-date, the XRP price is down double-digits by over 40 percent against the greenback. At the same time, XRP couldn’t hold on to ETH, especially as it slid by 22 percent. Luckily, the massive dip in BTC means XRP could pare hold losses and surprisingly register gains.
However, this is not enough.
Ripple prices may be stabilizing at spot rates, but the force of last week could be too big for determined buyers. If anything, this could turn out to be a “trying to catch a falling knife” scenario.
As such, the best approach may be patience. Staying on the sidelines until there is a clearer trend reversal may turn out to be the best strategy.
After all, last week’s losses could be climactic, and the end of losses tracing to mid-April 2021.
Nevertheless, crypto isn’t an outlier. The same market forces drive it like any other currency out there.
So, what do market participants think of Ripple prices in the immediate to medium term?
Ripple Price Chart is Bullish
On Trading View, one trader, Legenden17, says he is bullish.
In his view, this is not the first time the XRP/USD price is correcting by over 60 percent. There have been other dips in the past that prepped price action.
For instance, the surges of September 2018 saw prices race to $0.84 before capitulating to $0.20 in subsequent sessions.
XRP/USD prices were capped between $0.84 and $0.12 for three years before November 2020 surges and correction.
The wavy price action, therefore, provides a bargain for aggressive traders, explaining his bullish stance.
XRP/USD is ready for $10
Meanwhile, according to GOAT1375, the XRP/USD price has support at spot rates.
Notice that the Ripple price is trading within a bullish breakout pattern following gains of the last two months.
After peaking cents away from the psychological $2 level, the recoil to $0.85 and $0.90 zone could end up providing traders with a perfect loading opportunity.
GOAT1375 predicts XRP/USD price to reach $10 in the coming session based on his prognosis.
From the daily chart, if XRP/USD prices find support at the present level, it could confirm support.
Subsequent price gains from $0.80 above $1 may catalyze demand that would eventually drive prices above $2 towards $10—in a price movement that would closely trace how XRP exploded in 2017.
Cup-and-Handle Formation in the Weekly Chart
Reinforcing this confidence is the formation of the cup-and-handle trade pattern in the weekly chart. As per Otp_Yrc, XRP/USD price action favors buyers.
Subsequently, this could be an opportune time for aggressive traders to load the dips in anticipation of more price gains above $2 towards $5 in the coming weeks.
SEC-Ripple Settlement as Possible Catalyzer
Suppose their projections are accurate and Ripple price has support at spot rates, the settlement of the SEC-Ripple case could turbocharge the surge to $2 and $10.
Yes! I still believe that a settlement between the SEC and @Ripple will be announced on 5/31. Friday's hearing did not change that. Why I think a summary judgment in August is less favorable and less likely for both than a settlement at the las day of May: 1/10 #XRP
— stefan huber.truth (@Leerzeit) May 23, 2021
The spike northwards would be intensive if U.S. Judges rule in favor of Ripple, providing regulatory guidance on XRP.
Disclaimer: Opinions expressed are not investment advice. Do your research.
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