XRP has joined Bitcoin and the whole crypto market to see a flash crash, a devastating market collapse attributed to the clash between Iran and Israel.
Despite the obvious reign of bears over the market, analyst Mikybull Crypto (@MikybullCrypto) presents a bullish prediction, suggesting a potential rally to $3. Mikybull Crypto’s optimism stems from two technical indicators on XRP’s price chart.
The first is the two-year Moving Average (MA). Historically, a price crossing above this benchmark has preceded significant price increases for XRP. This occurred in late 2017 when a similar crossover was followed by a surge to XRP’s all-time high. The digital asset also exhibited similar behavior in 2021 before it climbed to $1.96.
Secondly, Mikybull Crypto identifies a symmetrical triangle formation. This pattern often indicates a potential breakout and other analysts have employed similar symmetrical triangles when predicting massive surges for the digital token.
In this case, a breakout above the triangle’s upper trendline could propel XRP towards $3.10, aligning with Mikybull Crypto’s 5x surge target. Notably, the 2017 price surge also coincided with a breakout from a similar triangle formation, adding weight to the analyst’s prediction based on historical trends.
Other Factors Determining XRP’s Trajectory
XRP is on the brink of a massive surge that will be helped or hindered by two crucial factors. These are the Securities and Exchange Commission (SEC) and the growing adoption by traditional financial institutions. These factors combine with technical patterns and indicators to provide a clear picture of XRP’s future.
The SEC lawsuit has been known to cause hesitation among investors, and many believe it hurt XRP’s adoption in the U.S. The lawsuit is in the penalties phase, and a favorable ruling in the form of a small penalty seems positive for XRP in the short and long terms.
Ripple’s value proposition lies in its technology facilitating faster and cheaper cross-border payments for financial institutions. Ripple has seen significant success with its ODL partners and increased adoption by banks and other financial players could significantly boost XRP.
In addition, the broader cryptocurrency market environment can also significantly impact the price of individual tokens. In XRP’s case, overcoming the resistance levels recently formed is a hurdle that needs to be cleared before any substantial growth. The lawsuit is near its end and with the Bitcoin halving coming, the next few weeks could give a glimpse into XRP’s future performance.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.