Key Takeaways:
- Crypto analyst TradinSides suggests that XRP may undergo a significant price crash as a bearish pattern forms.
- The predicted drop could potentially drive the crypto price to $2.2 or below.
- TradinSides indicates that the SEC’s decision to appeal the Ripple case could potentially increase selling pressure on XRP.
- If the SEC withdraws its appeal, the pending XRP ETF applications could be approved, possibly driving demand for XRP.
XRP Could Experience a Drop
TradinSides, a respected figure in the crypto analysis arena, warns investors to start considering reducing their long XRP holdings. The analyst lays out a potential bearish scenario that could lead to a substantial decline in XRP price. Triggering signals include the formation of a Head and Shoulders pattern, suggesting that the cryptocurrency might drop to $2.2.
The Role of Upcoming XRP Catalysts
Nonetheless, this bearish outlook is underpinned by the uncertainty regarding fiat developments such as the RLUSD stablecoin and upcoming XRP ETFs. These upcoming events generally paint a positive picture for Ripple’s native token, but they still face an uphill battle.
Ripple vs. The SEC
One of the significant hurdles is the SEC’s decision to appeal the Ripple case, a judgment that has cast a dark cloud over XRP’s price prospects. In a twist of events, the potential reappointment of SEC Commissioner Caroline Crenshaw might exert more downward pressure on XRP due to her known skepticism towards cryptocurrencies.
Ripple’s Potential Saving Grace
Interestingly, there is a silver lining amidst these uncertainties. If the SEC decides to withdraw its appeal, this could pave the way for the long-awaited green light for pending XRP ETF applications. Such a development could rejuvenate XRP’s demand and subsequently, its price.
Other Analysts’ Perspective
Crypto analyst Dark Defender provided a different analysis of the XRP situation in a recent post. The prominent analyst noted important targets and support levels to watch. His short-term targets for XRP stand at $5.85 and $8.76. On the flip side, Dark Defender outlined $2.29, $2.24, $2.10, and $2.02 as potential support levels.
XRP’s Response to the Current Market
As of now, XRP leads a stronger front with a considerable price boost. XRP stood at approximately $2.41 in the 24-hour ticker, as per CoinMarketCap data. That’s a remarkable recovery from its recent slump, suggesting that XRP holders aren’t shaken by bearish predictions or regulatory concerns.
Conclusion
In the ever-volatile world of cryptocurrencies, forecasts like these shouldn’t be taken lightly. However, they are just predictions, and the market has a tendency to sway dramatically. While the looming SEC decisions and other developments are posing challenges for XRP, the token is showing resilience in its price action. Therefore, investors should keep a keen eye on XRP’s movements and take balanced decisions based on a proper understanding of market dynamics.