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A technical analyst has asserted that intending investors now have “extremely” limited risk when entering the XRP market.
The market expert, known by the alias “Cryptoes” on X, voiced this sentiment in a recent commentary. The view emerged amid the altcoin market resuming the second-led bull frenzy after a brief setback triggered by Mt Gox’s $9 billion Bitcoin movement.
“Great time to be in XRP”
While XRP’s bulls are yet to join the trend, Cryptoes suggested that now is an opportune moment to buy XRP. According to the analyst, the downside risk to investing in XRP is significantly minimal. Notably, at press time, XRP trades at $0.53.
Great time to be in #XRP | At this stage I think the downside for $XRP is extremely limited
$0.50 Is Rock Solid Support
— Cryptoes (@cryptoes_ta) May 28, 2024
Here’s Why
The technical analyst based his perspective on XRP’s resilience around the $0.5 price channel, which is now seen as a “rock solid support.”
Notably, XRP has barely breached the $0.5 mark in the past 30 days. The asset has mostly fluctuated within this range, with a brief dip to $0.48 on May 1 being the only exception.
Considering XRP has held well for an extended period, the analyst believes the odds are presently in favor of investors.
Furthermore, XRP’s potential upswing is supported by the consistent recognition of a prolonged consolidation phase in its price. Various analysts have observed that XRP has been in an accumulation phase for approximately six years—since it dropped from its all-time high of $3.84.
The pattern that XRP has formed over this period is identified as a symmetrical triangle, which renowned market observers interpret as a bullish signal. These analysts have suggested various targets XRP investors can anticipate upon a breakout from the downtrend pattern.
For instance, analyst Javon Marks predicts as much as a 37,635% surge in XRP to $200. The audacious $200 target is inspired by XRP’s 75,000% rally post-2014 consolidation.
Moreover, beyond XRP’s technicals, the anticipation of an upswing for XRP is reinforced by the current bull market trend. Every major altcoin is expected to experience its own rally, setting new all-time highs.
Besides, XRP has not seen substantial movement since the start of the bull market seven months ago. Some market observers interpret this as a setup for explosive growth, which is typical for XRP.
However, some retail investors view the current lack of commendable movement as a negative indicator.