Expert Says Forget XRP to $100 or $1,000: It First Needs to Cross This Obstacle
thecryptobasic.com 31 July 2024 10:34, UTC Despite a notable 7% surge in XRP today, market experts are cautioning against overly optimistic projections of $100 or $1,000.
One macro trader, pseudonymously known as Crypto Addict, recently highlighted the immediate hurdles XRP must overcome before aiming for higher targets.
Before Eying XRP at $100 or $1,000
According to the trader, the resistance level at $0.7542 has posed a significant barrier for XRP, repeatedly halting upward movements within a long-term wedge pattern. As seen on the chart he shared, this level has been a major resistance point several times over the years, and overcoming it is essential for further price advances.
For instance, during the crypto market’s bull frenzy in the first quarter, XRP engineered a solitary 20% rally on March 11, setting a new yearly high at $0.74. However, XRP soon encountered a roadblock, losing steam to surpass the threshold.
Furthermore, the analyst noted that XRP’s relative strength index (RSI) is at 66, nearing overbought territory. According to Crypto Addict, a push to 78 would likely coincide with reaching this resistance level.
However, he underscored that a substantial increase in trading volume is essential to break through $0.7542 and target higher levels.
Notably, XRP posted a trading volume of $2.98 billion today, a massive 163% growth from the previous day’s figure. While this is significant, Crypto Addict estimates that more buying pressure is needed to surpass the critical $0.7542 resistance level.
Data Shows Increased Demand
Recent data from Santiment reveals encouraging indicators for XRP’s potential resurgence towards current barriers. Notably, there are signs that large investors are accumulating XRP.
Specifically, the number of XRP whales has surged by 2,389 in just five weeks, reaching a total of 279.36K as of July 30, 2024.
The correlation between the increasing number of large wallets and the rising price of XRP indicates that these investors’ accumulation phase contributes to upward price pressure. This trend is a bullish signal that reflects increased demand for XRP and can be linked to the current increase in XRP’s price.
XRP $100 Still a Target to Watch
While Crypto Addict believes $100 or $1000 is an overstatement, other analysts continue to target these ambitious levels. For instance, Javon Marks, an expert analyst, recently shared the possibility of a significant breakout in XRP’s price to levels between $100 and $500.
He noted that XRP is approaching a critical point within a symmetrical triangle pattern. If XRP successfully breaks out and follows through fully in a logarithmic manner, Marks suggests it could emulate its 2017 performance.
According to his analysis, such a breakout could potentially increase XRP’s value by more than 300 times, possibly reaching price levels exceeding $150.
