Following the legal standoff between the United States Securities and Exchange Commission (SEC) and blockchain company Ripple, which ended with a favorable outcome for the cryptocurrency industry, the token at the center of the lawsuit, XRP, has soared, and one expert believes it might continue its gains.
As it happens, XRP had briefly reached a price target of $0.82 before pulling back below this threshold, and crypto analyst CoinsKid has explained the technical analysis (TA) behind this, comparing the current situation to that in 2020, as he explained in a video on his YouTube channel streamed on July 17.
Buy the ‘blood’
Indeed, the expert has stressed the possibility of the XRP token going through a pullback and coming back to a support level before potentially making another upward move, as it did in 2020, advising his followers to buy during pullbacks instead of the big green candlestick movements.
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“What you want to do is buy (…) the pullback, you buy the blood, you buy the fear because that’s actually a friend. These big green candles are your enemies, and you sell to your enemies.”
Furthermore, CoinsKid noted XRP making an ascending triangle chart pattern, projecting a possible three-wave breakout that could lead to a significant increase in value for this cryptocurrency, particularly against the backdrop of the volatility in the crypto market and the possibility of a rebound for the US dollar, possibly peaking with XRP hitting the $6 mark by the end of 2023.
“The big wave #3 should, in theory, be the power to break the April 2021 high and potentially the all-time high (ATH) there for XRP, so just relax, chill out, and let the next couple of weeks just ride out in crypto, because obviously it’s very volatile, and we’ve got the DXY, which is really, really oversold as well.”
XRP price analysis
Meanwhile, XRP was at press time changing hands at the price of $0.74, suggesting a decline of 1.50% on the day but still holding on to the massive gains of 56.84% across the previous week and 53.44% on its monthly chart, as per the latest data seen on July 17.
All things considered, the digital asset’s ability to meet the above analyst’s expectations will depend on further developments related to the XRP ecosystem, as well as the general sentiment on the wider crypto and macroeconomic landscape.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
Watch the entire video below:
