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XRP has begun facing some bullish recovery in the market today, with a top analyst predicting further drawdowns before the next mega rally.
XRP is finally printing its first major upsurge this week, with the price rising 2.53% in the past 24 hours to $0.5055. The market capitalization has also received a major boost, jumping to $27,521,071,777 amid a 35% drop in trading volume to $877,022,040.
Market analyst XRP_SHARK is optimistic about XRP’s long-term growth prospects. However, he is not ruling out the inherent impact of market bears that may force additional selloffs in XRP’s price before any appreciable rally is recorded.
XRP Price to $1.40?
According to XRP_SHARK’s analysis, there is a chance that XRP will drop to $0.45 and $0.47 and then move toward the $0.53 to $0.57 price range. From here, there is a possibility of a bearish correction to the $0.35 to $0.40 price level.
1/2 This chart measures the liquidity area from the top we had close to 2$ until today (all the same move as it was downwards). Most liquidity sits at .35-.40 cents. And that liquidity is needed to make price move in the opposite direction. That's why I believe chances are good pic.twitter.com/ND40yRfLme
— XRP_Shark (@XRP_Shark) February 1, 2024
The analyst believes that once the XRP collapsed to the $0.35 to $0.40 price mark, the coin might have hit a floor in this currently erratic price era.
Per the chart he shared, XRP may print a bullish resurgence that could see it blow past the mega $1.40 price resistance soon.
The projections from XRP_SHARK are already playing out, judging by the current price level achieved after a rebound from the 24-hour low of $0.4903. While the analyst projected there are headwinds ahead, the future forecast is positive overall.
XRP Strains and Top Fundamentals
XRP remains the 6th largest cryptocurrency by market capitalization. However, it is one of the most strained cryptocurrencies in the market. The digital currency nosedived earlier this week after claims of Ripple Labs’ wallet compromise hit the ecosystem.
While there was indeed a hack, the exploit affected Chris Larsen’s wallet but had no impact on Ripple’s accounts. However, the event forced a selloff that XRP is just recovering from at the time of this writing.
With this strain now clearing off, XRP enthusiasts are hoping for the advances on the XRP Ledger (XRPL) to bring additional utility that can drive the demand for the coin in the long term. While a potential XRP ETF is still speculative, it remains a key fundamental that many believe can shape the future of the coin in the long run.