The post Top Analyst Advice XRP Holder To Take Profit Before It Crash appeared first on Coinpedia Fintech News
XRP’s price recently surged past $0.57 and briefly reached $0.63, reflecting a dramatic 28% increase over the past three weeks from a low of $0.419. Despite this impressive recovery, Nick Valdez from the Discover Crypto YouTube channel is raising alarms.
He advises XRP holders to consider taking profits, predicting a potential price crash. What does this mean for investors, and should you be taking action now?
Legal Victory Not a Guaranteed Win
Ripple, the company behind XRP, recently secured a major legal victory against the U.S. SEC, resulting in a $125 million fine rather than the $2 billion initially sought by the SEC. This fine, while substantial, is seen as a win because it is 94% lower than expected.
Due to Ripple’s legal victory, a notable spike in XRP’s price, which jumped over 30% to $0.64. While the boost was substantial, Valdez’s analysis indicates that this might be a temporary gain.
The judge’s ruling clarified that Ripple’s sales to retail investors did not violate securities laws, a decision that the SEC unsuccessfully tried to appeal. However, the SEC might still challenge this ruling, potentially impacting XRP’s future price.
Historical Pattern Suggests Caution
Examining the historical data Valdez’s advice, was that XRP’s price did not experience significant long-term gains in response to major events. He highlighted two key instances where XRP saw initial gains but then experienced significant pullbacks
For instance, the first was in December 2020 when the SEC lawsuit announcement caused XRP to drop sharply from a high of $0.78 to as low as $0.168. Despite this, XRP stabilized around $0.23 shortly after.
The second instance was in July 2023 when XRP secured a partial victory though XRP saw its price double from $0.47 to $0.93 following a court ruling that XRP is not a security. However, within a month, the price reverted to around $0.47, dropping off the entire gain.
Time to Take Profits?
Based on these historical patterns, Valdez predicts that XRP might experience a similar regression shortly. He estimates the price could stabilize between $0.50 and $0.60 by mid-September. Valdez advises XRP holders to consider taking profits before potential short-term declines.
While he remains optimistic about XRP’s long-term prospects due to its role in the global financial system, he warns that short-term traders might face resistance, especially around the $0.93 mark.
Currently, XRP is trading at $0.59, reflecting a rise of 1.19%, with a market cap of $33.27 billion.
