XRP, one of the largest cryptocurrencies by market cap, has been bullish since May 26, outperforming most of the top 10 cryptocurrencies. The price surge comes amid high investor expectations for the outcome of the ongoing SEC vs. Ripple Labs case.
XRP breaks 2-year trendline
XRP’s recent uptrend is particularly significant as the cryptocurrency just broke a two-year trendline, a key technical indicator for traders and investors, according to To trader Jaydee.
The 2-year trendline broken in 2017 caused the XRP price to surge 504x. source: Jingdong on Twitter.
According to Jaydee’s analysis, in 2017, XRP experienced a major breakout when it crossed a two-year trendline. This breakthrough resulted in a massive increase in the value of the crypto, with XRP surging 504 times in just one year. This means that if investors bought XRP in early 2017, they would have seen an ROI of over 50,000% by the end of the year.
If XRP experiences a similar surge in value today, the cryptocurrency is currently trading at $0.5116, and it could be worth $258 by 2024. However, it is important to note that predicting future price movements in the cryptocurrency market is extremely challenging and many human factors can affect the value of XRP.
For example, the ongoing SEC vs. Ripple Labs case could significantly affect the token’s future price action. If the case is resolved in Ripple Labs’ favor, it could increase adoption and investment in XRP. On the other hand, if the case comes to a verdict against Ripple Labs, it could lead to less demand for crypto and a drop in its value.
However, Jaydee doesn’t think the cryptocurrency will experience a 504-fold surge any time soon. According to analysts, the market capitalization of XRP is too high to support such a significant increase in value. The token has a market cap of over $26 billion, making it the sixth-largest cryptocurrency by market capitalization.
Despite these uncertainties, many investors remain bullish on XRP’s prospects. The cryptocurrency has seen widespread adoption in the financial industry, with many major banks and payment processors using XRP for cross-border transactions.
Key metrics point to significant growth potential
According to the Average Sentiment Oscillator (ASO), XRP’s current setup is very bullish, with several key indicators pointing to a strong uptrend in price. A key factor contributing to this bullish sentiment is the high volatility of XRP Market Depth, indicating strong interest and demand for the crypto.
Additionally, the strength of the current trend is strong, with a bullish crossover suggesting that XRP may continue its upward trajectory, according to a recent analyze Encrypted by Egrag. Although the price of XRP has risen for nearly four months, there is still a major resistance level that Egrag called the “final wake-up line” that XRP has not yet broken.
Support and target levels for XRP. source: Egrag Crypto on Twitter.
However, according to the latest analysis by Egrag Crypto, even if the coin undergoes a minor correction after a 20% surge, there may still be support levels at $0.4810 and $0.4277, which may prevent a sharp drop in value.
If XRP does break below these support levels, it is considered normal and nothing to worry about as long as it sees its lower line as strong support in the short term. This support box can serve as a key area of stability for XRP, allowing it to continue its upward price trend.
XRP appears to be consolidating after a 20% price surge on the 1-day chart. Source: XRPUSDT on TradingView.com
Featured image via iStock, chart via TradingView.com
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