After dropping to a low of $2 recently, XRP has seen significant growth in its value. The altcoin managed to reach $2.5, marking its highest point in a fortnight thanks to these positive developments. Despite a slight pullback, currently trading at $2.45, XRP still recorded a weekly gain of nearly 13%.
However, XRP continues to face challenges in breaking out of its consolidation phase, leading analysts to speculate on its future trajectory.
Renowned crypto analyst Ali Martinez suggested a potential retreat to $2.05 or a surge to $11, pointing to the $2.73 resistance level as a determining factor.
Evaluating Market Sentiments
In Martinez’s assessment, XRP remains within a consolidation pattern resembling a large bullish pennant formation on the charts.
This pattern often indicates a continuation of the existing trend. According to Ali, despite the bullish signs, XRP could experience a pullback. This means that unless the $2.73 resistance level is breached, a decline to $2.05 might precede another upward movement.
Breaking past this level is crucial for confirming the bullish trend. Conversely, surpassing $2.73 could propel XRP towards its all-time high of $11.
Insights from XRP’s Charts
While the previous analysis highlighted XRP’s consolidation phase and its connection to future trends, deeper examination indicates further potential for upward movement.
Investor sentiment across the market remains predominantly optimistic.
The MVRV ratio for XRP recently increased to 4.66, a relatively high value that has not yet reached the overbought level of 7.
Historically, an MVRV of 6.5 has signaled the conclusion of an uptrend for XRP. For instance, when XRP hit $2.8, its MVRV stood at 6.50. Back in 2018, the altcoin’s MVRV reached 15 at a price of $3.11.
In essence, the current levels indicate a stable market, suggesting potential growth until the MVRV reaches at least 7.
Moreover, XRP investors have shown bullish tendencies, as reflected in a positive Bitmex basis ratio. A positive basis ratio implies a strong demand for long positions, indicating bullish investor sentiments expecting price escalation.
In conclusion, despite recent sideways trading patterns, XRP appears primed for a breakthrough. A breakout from the consolidation phase could propel XRP to $2.88, with an upward push possibly leading to a new all-time high due to minimal resistance levels. However, a failure in this bullish momentum could result in a drop to $2.