XRP Could Potentially Reach $8 Towards the End of 2024 After Breaking Out from a Pattern Dating Back to 2018, Indicating Strong Momentum
Following a peak at $2.8 recently, XRP experienced a corrective phase with a decline over the past 24 hours. Nevertheless, an analysis highlights that XRP may still be undervalued. Does this signal a forthcoming resumption of the bullish trend?
Is XRP Truly Undervalued?
XRP bulls managed to push the token’s value up by a marginal 2% over the past week. Nonetheless, this uptrend was short-lived, as bears regained control, resulting in a 3% decrease within a day.
Currently, XRP is exchanging hands at $2.48 with a market cap exceeding $141 billion.
A renowned crypto analyst, Ali Martinez, recently highlighted a breakthrough where XRP surpassed a bullish symmetrical triangle pattern established back in 2018. Since the pattern’s emergence, XRP’s value has been consolidating within it.
Martinez observed that XRP might still be undervalued, given the breakout from this multi-year pattern. He cited two potential price targets: a conservative estimate of $8.4 and an optimistic projection of $48.
Future Trajectory of XRP
Although the earlier analysis hinted at XRP being undervalued, the token experienced a setback in the past 24 hours. Analyzing the technical indicators offered insights into this downturn.
Notably, XRP’s Relative Strength Index (RSI) retreated from the overbought region, indicating increasing selling pressure, accompanied by a similar declining trend in the Money Flow Index (MFI).
An interesting divergence was noted with the Chaikin Money Flow (CMF) showing an upward movement. This suggests a surge in buying pressure, potentially signaling an impending uptrend.
Sentiment data demonstrated that the token’s weighted sentiment had shifted into the negative territory, signaling rising bearish sentiment around XRP.
Despite the decline in trading volume as the market sentiment turned bearish, a drop in both volume and price often hints at a possible bullish trend reversal.
Furthermore, the open interest declined, further indicating a likelihood of the prevailing price trend undergoing a change.
In the event of a bullish reversal, crossing the $2.7 mark is critical for XRP in the short term, as increased liquidation activity is anticipated at that level, which typically triggers price corrections.
Conversely, if bearish momentum persists, XRP could potentially dip to $2.43 shortly.