Analyst Steph predicts XRP could reach $40, based on technical patterns.
Inverted Head and Shoulders pattern on daily chart suggests $1.11 target.
Market sentiment and macroeconomic factors could support XRP’s growth.
Renowned market analyst Steph has ignited discussions in the cryptocurrency community with a bold prediction for Ripple coin’s future price action.
His analysis, shared on social media platform X, suggests that XRP could be on the verge of a significant breakout, potentially reaching as high as $40 in the long term.
Steph’s analysis centers on two key technical formations across different timeframes. On the daily chart, he identifies an inverted Head and Shoulders pattern, a bullish formation that could signal a trend reversal.
BUY #XRP BEFORE $40.00 !!! pic.twitter.com/d6O67E7b0A
— STEPH IS CRYPTO (@Steph_iscrypto) September 10, 2024
The analyst posits that a daily close above the pattern’s neckline, situated around $0.65, would confirm the breakout. With XRP currently trading at $0.538, a successful breach of this level could pave the way for a surge to $1.11, representing a 106.31% increase from current prices.
Can XRP hit the $40 mark?
The monthly chart paints an even more optimistic picture, according to Steph. He observes XRP consolidating within a larger symmetrical triangle, a pattern that, if broken to the upside, could theoretically propel the asset to the $40 mark.
While acknowledging the ambitious nature of this target, representing a staggering 7,334% growth from current levels, Steph advises treating it as a “rough guideline” rather than a certainty.
Steph’s projections, while bullish, are not the most audacious in the XRP analysis sphere. In July, analyst Heikin Ashi proposed an even more dramatic scenario, suggesting XRP could potentially surge 71,061% to reach $305.
Ashi’s analysis drew parallels between current monthly candlestick patterns and those preceding previous periods of explosive growth. However, many in the crypto community view such extreme price targets with skepticism.
Beyond technical indicators, Steph emphasizes the importance of broader market conditions in driving XRP’s potential surge. The current Crypto Fear and Greed Index reading of 33 indicates a state of fear among retail investors, which Steph interprets as a buying opportunity.
He argues that “smart money typically buys into fear,” suggesting that contrarian investors might see current market sentiment as favorable for accumulation.
