Price movement of XRP has been slow recently; it stays about $0.53 and shows a 7% drop over the previous month. Many investors are becoming frustrated as they see the altcoin stagnating after a bit of an increase recently.
Despite the weak performance, technical analysts are starting to see possible signals of a major change despite the negative vibe; if XRP effectively crosses an important Fibonacci retracing level, they project a strong recovery.
Market analyst “Random Crypto Pal” thinks XRP is about to break out in an “explosive” manner. On social media, he shares his observation and emphasized the significance of the 0.236 Fibonacci level, which XRP has not yet hit but is approaching. Should this level give way, he expects a price explosion similar to the one it observed in 2017.
Once #XRP breaks above 0.236 fib the 2017 #XRP EXPLOSION is coming
Only PURE FACTS
Like repost FOLLOW pic.twitter.com/AOz255KQ0y
— Random Crypto Pal (@RandomCryptoPal) October 13, 2024
The Trajectory Of XRP Towards $0.80
The Fibonacci level of 0.236 analysts have on their radar would see a price that is slightly above $0.80. XRP is currently trading at $0.548, so an approximate gain of 45% would be needed to be achieved in order to bring about a price for that. When it reaches this threshold of $0.80, the huge returns may appear rather quickly for the coin.
In 2017, XRP broke above the resistance of 0.236 Fibonacci and continued on a long rising trajectory that topped at an all-time high in January of 2018. The historic parallel gives analysts hope that history may repeat, but unless XRP is able to break this resistance level it is not really possible to predict whether or when the rally might occur, nor the magnitude of the price increase.
Ripple’s Legal Dispute
A primary obstacle that may mitigate this confidence is XRP’s protracted legal dispute with the US Securities and Exchange Commission (SEC). The ambiguity over this litigation persists in affecting investor sentiment. The SEC has classified the majority of altcoins as investment contracts; nonetheless, XRP has endured the most intense scrutiny, rendering it one of the most legally complicated digital currencies available.
The decision of the court that XRP is not a security constituted a major victory for Ripple Labs, but it has almost been challenged by an appeal from the SEC. The ongoing lawsuit between Ripple and the SEC gives uncertainty over how long the cryptocurrency would face this uncertainty.
Anticipation Of A Promising Future?
XRP could, therefore, present the avenue of survival through institutional investment despite the judicial ambiguity. Bitwise and Canary Capital appear to believe in the coin by pushing for a US-based XRP ETF. This tool would definitely make XRP’s position better and may attract more investment. Furthermore, advancements on the XRP Ledger are fostering optimistic feeling among the community.
The potential for XRP to surpass $0.80 and initiate a new surge is yet to be determined. Nonetheless, due to the influence of technical, legal, and institutional considerations, investors are closely monitoring forthcoming developments.
Featured image from iStock/Getty Images Plus, chart from TradingView
Source: NewsBTC