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Co-founder of Black Swan Capitalist: Ripple Price Ahead Of A Major Rally — Is XRP Going To $10?

Last Updated June 21, 2024 3:14 PM
Nikola Lazic
Last Updated June 21, 2024 3:14 PM

Key Takeaways

  • XRP shows potential for significant returns in the 2025 bull market.
  • Ripple’s ecosystem enhancements may boost XRP utility and adoption.
  • XRP’s price stability amidst challenges suggests an upcoming bullish movement.

XRP, after rising from a low in 2016 to an all-time high in 2018, is currently positioned as a potential investment ahead of an expected 2025 bull market. Vandell Aljarrah of Black Swan Capitalist illustrates that an investment in XRP at its current lower price could yield substantial returns if it reaches its previous highs during the upcoming bull market. 

Despite current challenges, Ripple is enhancing its ecosystem with developments like Automated Market Maker functionality and plans for a native lending protocol and a stablecoin on the XRPL. These initiatives aim to boost XRP‘s utility and adoption in digital finance.

Considering the substantial XRP’s underperformance compared to the rest of the market, will its later starting bull cycle push the price to $10, mimicking its previous cycles? 

XRP Starting New Bull Cycle? 

From April 13, XRP has been trading within a tight range between $0.50 and $0.48, staying resilient despite ongoing legal battles with the SEC and a broader market downturn. The stability in price contrasts with a noticeable increase in open interest, as highlighted by Cryptoquant analysts, suggesting growing trading activity and investor expectations for a price rise. This trend, indicating robust interest in XRP futures and derivatives, could signify upcoming positive movements in its price.

Market insights firm Santiment noted significant short-covering activities among XRP traders, which might be a potential catalyst for price increases. Analysts view the short liquidations positively, seeing them as potential “rocket fuel” for future price rises. 

Amidst these optimistic forecasts, XRP faces continued uncertainty due to the SEC’s ongoing lawsuit against Ripple Labs. The crypto community is closely watching for any court rulings that could decisively impact XRP’s future. However, optimism is bolstered by recent regulatory developments around other cryptocurrencies, like the closure of the SEC’s investigation into Ethereum 2.0, which may also hint at a favorable outcome for Ripple.

Could XRP Reach $10? 

Ripple’s price made an all-time high, slightly above $3, in January 2018, after which it started a multi-year bear cycle, finding a bottom at $0.10 in March 2020. In its next bull market, it reached a lower high of $2 in April 2021, but at its next bear market, it established a higher low of $0.30 in June 2022. 

XRPUSD | Credit: Nikola Lazic/Tradingview

With the crypto market entering a new bull phase since November 2023, XRP recovered but stopped at another lower high of $1 in July 2023. While the rest of the market continues its upward journey, XRP has struggled since last July and has been trading around $0.50 since April 13, 2024. 

This corresponds with the price approaching a symmetrical triangle apex, with its resistance level anchored at its all-time high and its support from the March 2020 low. A weekly chart shows that this whole move from the all-time high could be a prolonged wave 4 of the highest degree, meaning its next bullish wave is yet to come. 

With wave three usually being the strongest accordion to the Elliott Wave Principe, the expected wave five could come as a 0.618 Fibonacci extension, bringing the price target around $10. Also, we developed the match target by projecting the length of its first wave from August 2013, further validating the zone. 

First, we need to see a breakout above the symmetrical triangle’s resistance. A breakout to the downside could be as likely, in which case XRP could fall to the $0.30 area. But a breakout to the upside could be the first hint at its next advancement to a new all-time high. 

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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