- XRP has been predicted to break out from a bull pennant to hit $14 as the current price action mirrors a 2017 move.
- Another analyst has labeled this as a more conservative estimate, predicting a $73 level for the asset.
XRP makes a U-turn after peaking at $2.3 on its 24-hour price chart. At the time of writing, the asset was down by 3.4% in the last seven days, 7% in the last 30 days, and 4% in the last 90 days to trade at $2.2. Fascinatingly, the ongoing trend is not supported by the 24-hour trading volume, which is still up by 159% with $5.2 billion changing hands.
While the XRP’s price action keeps painting a blurry picture of its future outlook, analysts have also pointed out that the asset is only mirroring its previous cycle. As noted in our earlier post, a crypto analyst identified as Bobby A believes that XRP is replicating a major move witnessed in the 2016-2017 cycle. In 2016 specifically, the asset appeared bearish to a greater extent until it officially broke out to a significant height.
Much like during 2016, the price is tightly wound around all essential higher timeframe moving averages, including the median line of the monthly Bollinger Bands.
Mikybull Crypto Speaks on XRP’s Repetition of the 2017 Move
Confirming this report, another analyst known as Mikybull Crypto has disclosed that XRP is following a 2017 playbook on its three-week time frame. In 2017, a move from a bull pennant triggered a 1,300% upsurge to an all-time-high level of $3.4. Looking at the current price action, XRP is consolidating in a bull pennant in the weekly timeframe.
Technically, the bull pennant occurs when there is a higher sharp move, followed by a pause, and a consolidation in a small symmetrical triangle. However, the price would have to break above the higher resistance level of the triangle to target the previous uptrend height. Looking at the current chart, the analyst estimates that XRP could likely hit $14, representing a 530% surge.
Mikybull Crypto’s prediction coincides with a previous “call” by analyst Zach Rector, which fixed XRP’s target at $15. As explained in our last analysis, Rector used the market cap multiplier model and the XRP ETF projection by JPMorgan to arrive at this level. In a more extreme position, Research firm Sistine Research has indicated that these projections are “criminally” conservative. To them, $73 is more reasonable, looking at its huge potential.
As we covered in our recent blog post, the firm’s analyst Forrest argues that breaking above the $3 resistance level could send XRP to between $7 and $10. A move from this range could see the asset reaching $17, $37, and $73.
Meanwhile, Forbes analysts believe that regulatory clarity and Institutional adoption could be a few of the many factors that could fuel this expected move. As highlighted in our earlier discussion, the several Institutional ties of XRP have to reflect in its regular utility rather than just the platform’s growth.
Already, eight heavyweight institutions, including Chinese AI firm Webus, are reported to have declared their intention to invest in the asset, as covered in our recent update.
Recommended for you:
Credit: Source link
