Cryptocurrency traders are used to seeing the XRP token lag compared to the cryptocurrency. When Bitcoin and other Altcoins move, XRP is seen consolidating still. Only after a few weeks do XRP prices start to move. This phenomenon happened several times over the course of the past 4 years. Today, after weeks of consolidation around the price of USD 1, XRP jumped all the way to reach a price of USD 1.25. Can XRP sustain its price increase or will the price adjust lower again?
XRP Price was Bound for an Explosion
When Bitcoin prices started to rally, most cryptos started to move upwards. In fact, Bitcoin’s market dominance of more than 45% is still pretty significant. When Bitcoin moves, the entire cryptocurrency market moves as well. The opposite outliers usually are the ones that lag and take some time before they follow the overall market trend. For XRP’s case, it is exactly the case.
XRP moved from a price of USD 0.40 all the way to a high price of USD 1.95, before retracing heavily back towards USD 0.50. This wild ride made day traders react and buy again at that low support price. This moved yet again XRP prices towards the psychological price of around USD 1. At this level, and since August 2021, prices consolidated between USD 0.90 and 1.30. Every time prices neared the bottom support, they rebounded back upwards, creating the perfect day trading setup for XRP traders.
Should you Buy XRP Today?
Looking at the short term, day traders would definitely get away from such price-action. XRP prices reached a strong resistance area and are likely to adjust lower. In figure 2, we can see that the sideway trend is delimited by the lower price of USD 0.90 and USD 1.30. If you were to Buy XRP today, you would want to definitely wait for trend confirmation. XRP prices should confirm above the price of USD 1.30, and this is where a buy entry can be placed. On the other hand, placing a stop-loss around USD 1.28 would be a good idea, in case the market decided to retrace lower after such a rally.
Ripple might Settle with the SEC and XRP to Moon?
Looking at how XRP prices are still far away from their all-time high prices, one cannot but anticipate a reach of this previous level. This prediction does not only come as the cryptocurrency market is rallying and most tokens already reached their previous ATH, but specifically for XRP, prices are still shy.
This is mainly because Ripple company still has a pending lawsuit with the SEC. In case the company manages to settle or even win the legal case, XRP prices are likely to soar and reach a market valuation of at least USD 100B, which almost leads to a price of USD 2.01 per XRP. For now, the best thing to do is to buy at a support level, sit back and enjoy the ride.
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Rudy Fares