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2024-05-08 08:00:17

Breaking Free: Analyst Eyes $1.68 Breakout For XRP After Years In The Shadows

The price of XRP, the native token of Ripple, has been on a rollercoaster ride in recent years. After reaching a peak of nearly $2 in April 2021, it has been in a downward motion, leaving investors wondering if a comeback is on the horizon. However, a recent analysis by market analyst Jonathan Carter suggests that XRP might be on the verge of a significant breakout. Related Reading: Cardano (ADA) Trading Activity Goes Quiet: Will This Drag Down The Price? XRP Stuck In Symmetrical Triangle Carter’s prediction hinges on a technical chart pattern known as a symmetrical triangle. This pattern typically forms during periods of consolidation, with prices bouncing between converging upper and lower trendlines. XRP has been trading within this triangle for several years, indicating a potential struggle between buyers and sellers. Support Retest Fuels Breakout Hopes The recent price drop in April, which mirrored a broader market correction, saw XRP retest the lower trendline of the symmetrical triangle. In technical analysis, such a retest is often seen as a precursor to a breakout, where the price decisively breaks through one of the trendlines. Carter believes this retest signifies an imminent upswing for XRP. #XRP Ripple is bouncing from the lower trendline of a symmetrical triangle on the weekly chart🧐 A successful breakout above this triangle would be a bullish signal with mid-term targets at $0.93 and $1.68🎯 — Jonathan Carter (@JohncyCrypto) May 6, 2024 Undervalued XRP? MVRV Ratio Hints At Opportunity Adding fuel to the fire is the MVRV Ratio, a metric used to gauge whether an asset is overvalued or undervalued. XRP’s current MVRV sits at a low -0.5733, suggesting that the token is trading significantly below its historical average price. This could be interpreted as a sign of undervaluation, potentially attracting investors seeking undervalued opportunities. Analyst Projects Mid-Term Target Of $1.68 Carter forecasts an initial spike towards $0.93, a level that XRP briefly touched in July 2023 after a favorable verdict in the current SEC dispute, should a breakout from the symmetrical triangle occur. XRP market cap currently at $28.8 billion. Chart: Carter, however, thinks that XRP will overcome this resistance level this time around in order to reach its more ambitious mid-term goal of $1.68. It would take an incredible 213% increase from the current price of $0.53 to reach this goal. XRP seven-day price action. Source: CoinMarketCap Experts Urge Caution Despite Bullish Outlook While Carter’s analysis paints a bullish picture for XRP, financial experts advise caution. The cryptocurrency market remains highly volatile, and unforeseen events can drastically alter price movements. Related Reading: 900 Million Telegram Users Send TON Token Soaring 15% – Details Additionally, the ongoing lawsuit between Ripple and the SEC regarding XRP’s classification as a security continues to cast a shadow over the token’s future. A negative outcome in the lawsuit could dampen investor sentiment and hinder any potential price surge. Featured image from iStock, chart from TradingView

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