XRP has consistently remained a hot topic within the cryptocurrency community, particularly on social media platforms where enthusiasts voice their opinions on its price dynamics. With speculation surrounding the legal ramifications involving Ripple and the SEC, many are eager to see if XRP could soar to new highs. However, alongside these optimistic views, some analysts are sounding alarms, anticipating a possible downturn for the cryptocurrency.
The Potential Downfall of XRP
Financial analyst CryptoGuru recently expressed significant concerns about XRP’s pricing trajectory on the TradingView platform. They argue that following a steep 600% surge peaking in early 2024, XRP appears to be losing momentum and may be on the verge of a substantial decline.
One major point raised by the analyst is the protracted price range that XRP has endured over the years. Despite a notable uptick in prices, they maintain that this range, established in 2017, is still in play. Although XRP exceeded $3 briefly, it remains constrained within an ascending triangle pattern, which suggests bearish conditions at present.
Furthermore, the analyst identifies the existence of a significant Fair Value Gap (FVG) created during the recent price surge. In their experience, FVGs often get rectified, especially after extended periods of price stagnation. Unfortunately for XRP proponents, this gap appears to indicate a retraction toward much lower price levels.
Interestingly, the historical behavior of XRP demonstrates erratic price movements, often resulting in liquidity extraction from traders during stagnant periods. Recent trends suggest that bearish sentiment has historically been more influential than bullish, reinforcing the notion that traders should proceed with caution.
Predicting Future Price Levels
According to CryptoGuru, it appears that XRP has peaked, prompting them to suggest that investors should reconsider their positions. Even at $2.1, they argue that XRP is significantly overvalued, primarily because it sits at the apex of an ascending triangle formation. They predict that the price could plummet to approximately $0.6, which would reflect a staggering 72% decrease and revert to pre-surge levels.
For those who acquired XRP before the rally, the analyst recommends locking in profits at current levels to mitigate losses. Conversely, investors who entered after the surge might face challenges and should consider exiting at a minimal loss or at breakeven to cut their losses. Lastly, futures traders are advised to close any existing positions prior to a downturn and consider shifting to short-sell strategies to capitalize on XRP’s predicted decline.
