Breaking Free: Analyst Eyes $1.68 Breakout For XRP After Years In The Shadows

Christian Encila

1 year ago

3 mins read

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The native token of Ripple, XRP, has seen a wild journey in recent years. Rising about $2 in April 2021, it has been in a declining trend that has left investors wondering whether a comeback is just around.

However, a recent analysis by market analyst Jonathan Carter suggests that XRP might be on the verge of a significant breakout.

XRP Stuck In Symmetrical Triangle

Carter’s estimate depends on a technical chart pattern sometimes referred to as a symmetrical triangle. Usually forming during times of consolidation, this trend shows prices oscillating between converging upper and lower trendlines.

XRP has been trading within this triangle for several years, indicating a potential struggle between buyers and sellers.

Support Retest Fuels Breakout Hopes

XRP retest the lower trendline of the symmetric triangle in April, which reflected a larger market correction’s price decline lately.

Technically, this kind of retest is sometimes considered as a prelude to a breakthrough, in which case the price clearly crosses one of the trendlines. Carter thinks this retest marks XRP’s approaching upward trend.

#XRP

Ripple is bouncing from the lower trendline of a symmetrical triangle on the weekly chart🧐

A successful breakout above this triangle would be a bullish signal with mid-term targets at $0.93 and $1.68🎯 pic.twitter.com/sbZXfEYMCM

— Jonathan Carter (@JohncyCrypto) May 6, 2024

Undervalued XRP? MVRV Ratio Hints At Opportunity

Fueling the flames is the MVRV Ratio, a measure of asset valuation relative to others. With XRP’s present MVRV of a low -0.5733, the cryptocurrency is clearly selling well below its historical average price.

This could be interpreted as a sign of undervaluation, potentially attracting investors seeking undervalued opportunities.

Analyst Projects Mid-Term Target Of $1.68

Should a breakout from the symmetric triangle take place, Carter projects an initial surge towards $0.93, a level XRP momentarily approached in July 2023 following a positive outcome in the present SEC conflict.

XRP market cap currently at $28.8 billion. Chart: TradingView.com

But Carter believes XRP will conquer this barrier level this time around to meet its more ambitious mid-term target of $1.68. To get to this target, one would need an amazing 213% rise from the present price of $0.53.

XRP seven-day price action. Source: CoinMarketCap

Experts Urge Caution Despite Bullish Outlook

Although Carter’s research presents a positive image of XRP, financial analysts warn readers. The market for cryptocurrencies is still somewhat erratic, thus unanticipated developments can significantly change price swings.

Furthermore clouding the future of XRP is the continuous battle between Ripple and the SEC over its categorization as a security. A lawsuit’s poor result would lower investor confidence and impede any possible price spike.

Featured image from iStock, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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