XRP Expected to Reach $8 by the End of 2024 Following Recent Breakout Patterns…
The price of XRP experienced a slight dip after reaching $2.8 last week, signaling a period of correction. However, a recent analysis has suggested that the token may still be trading below its true value. Could this indicate a potential resurgence in the near future for XRP?
Is XRP Currently Undervalued?
Despite a moderate 2% increase in price over the last seven days, XRP faced a downward trend with a 3% decline within the past 24 hours due to bearish market sentiment taking over from the bulls.
As of the latest data, XRP is valued at $2.48, boasting a market cap exceeding $141 billion.
An analysis by renowned crypto expert Ali Martinez highlighted a significant breakthrough for XRP as it broke out of a long-standing bullish symmetrical triangle pattern that first emerged back in 2018. This breakout has implications for the token’s valuation, with Martinez identifying potential price targets: a conservative estimate of $8.4 and a more optimistic projection of $48.
Future Outlook for XRP
Despite the optimistic analysis, XRP witnessed a minor pullback in the past day. Technical indicators examined by CryptoCrypto revealed a possible explanation for this shift.
The Relative Strength Index (RSI) for XRP dipped from the overbought territory, indicating a rise in selling pressure. Similarly, the Money Flow Index (MFI) followed a downward trajectory.
An interesting contrast was found in the Chaikin Money Flow (CMF) which showed a rise, signaling an increase in buying pressure and a potential uptrend.
Sentiment analysis data indicated a shift towards negative sentiment surrounding XRP, suggesting a growing bearish outlook.
Despite these developments, a significant decrease in XRP’s trading volume correlated with the bearish movement, hinting at a potential reversal towards a bullish trend during such conditions.
The decrease in open interest further supports the likelihood of a change in the existing price trend.
In the event of a bullish reversal, XRP must surpass the $2.7 threshold in the short term, given increased liquidation at that level often resulting in price corrections.
Alternatively, continued bearish momentum could lead to XRP dropping to $2.43 in the near future.