Over the last few weeks, despite increased participation from investors in the crypto market, the XRP price has continued to struggle. Stuck at what seems to be a make or break level just above $2, the tug-of-war between the bears and the bulls continue. In this case, the XRP price could go anywhere from here as there is yet to be any clear definition and both scenarios could carry major implications for the cryptocurrency.
The Bull Case For The XRP Price
A crypto analyst on the TradingView website has offered the possible scenarios when it comes to both the bullish and bearish possibilities for the XRP price. For one, the XRP price still remains quite bullish, which is a good thing for the altcoin. As the crypto analyst points out, the price at around $2.19 still shows that it is a structural demand zone and bulls have held this level, turning it into support for the digital asset.
Another major thing that is shown on the chart is that there are signs of accumulation as the consolidation continues. From here, the next major level that the XRP price would need to beat would be the $2.59 level. According to the analyst, this “would signal a structural shift, confirming a break of the descending trend line and reactivating momentum toward new highs.” It is also the level that would provide confirmation of the uptrend for bulls.
The targets for the XRP price from here include a retest of its recent local high at $3.40. A successful break above this would put it right on the path toward $4.08, which the analyst says is a “Fibonacci 23.6% extension from the major leg.”
The Bearish Case
While there continues to be a lot of bullishness surrounding the XRP price right now, there is still the possibility that the price does break down. The crypto analyst does explain that a dip toward the $1.8-$2 wouldn’t be much cause for alarm as it would offer a good level to get into the digital asset at a cheap price.
However, the problem arises if the cryptocurrency is unable to maintain this demand zone and falls further. The invalidation point for the digital asset lies at $1.6134, which is a more than 20% decline from the current level. Nevertheless, a pullback is not expected to last long as the TSI reading continues to show “strong momentum with possible short-term pullback.”
Factors Driving XRP Confidence
In the post, the analyst also includes other factors beside technicals that are driving up confidence in the XRP price. First of these is the fact that Ripple continues to strengthen its position as a cross-border payments player. Additionally, the company has emerged victorious in its 4-year long battle with the Securities and Exchange Commission (SEC) over regulatory clarify.
Last but not least is the fact that the XRP Ledger continues to grow, especially with the integration of the RLUSD stablecoin. “Technically and fundamentally, XRP is positioned to benefit from renewed market rotation into large-cap altcoins, especially if broader sentiment continues to improve,” the analyst concluded.
Featured image from Dall.E, chart from TradingView.com
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