XRP to $11? Looking into what’s next for altcoin after 12% weekly hike

XRP surged by 12.91% over the last 24 hours
Analyst believes a move to $11 may be likely if the altcoin breaks out beyond $2.73

Over the past four days, XRP has experienced significant growth on its charts, following a dip down to $2. This upward trend allowed it to reach $2.5 for the first time in two weeks. While there’s been a slight retreat lately, with XRP trading at $2.45 as we speak, this hasn’t stopped it from seeing an impressive 13% increase over the past week.

As a researcher, I’m observing that XRP continues to grapple with breaking free from its current trading range. The ongoing market scenario has sparked discussions among analysts about what might be the coin’s next step.

As per well-known cryptocurrency analyst Ali Martinez’s assessment, there could either be a possible decline towards $2.05 or an upward trend to $11 in the near future. He bases this prediction on the existing resistance level at $2.73.

Assessing the market sentiment

According to Martinez’s examination, XRP appears to be holding steady inside a large, upward-sloping pennant formation as seen in the chart patterns.

When this pattern forms, it often precedes the continuation of its previous trend.

As per Ali’s analysis, while the altcoin continues to show a bullish trend, there’s a possibility of a temporary reversal or dip. Until the resistance at $2.73 is surpassed, a potential drop to around $2.05 might take place before another upward movement begins.

Consequently, unless the price jumps over the current level, there’s a chance that the bullish trend might not hold true. However, should the altcoin overcome the $2.73 barrier, it could potentially reach a new record high of $11.

What do XRP’s charts say?

Previously discussed findings indicate that XRP’s current position within a consolidation phase could either reinforce an upcoming bullish momentum or disprove it. Yet, upon closer inspection by AMBCrypto, there seems to be potential for further price increase in XRP as indicated by the chart analysis.

Especially since investors are still fairly bullish across the market.

Initially, the Multi-Vintage Ratio of XRP increased during the last seven days to a level of 4.66. Although this figure is quite elevated, it has not yet surpassed 7, the point at which it’s considered overbought.

Historically, an altcoin’s MVRV (Market Value to Realized Value) ratio reaching 6.5 has often indicated the conclusion of a bullish trend. For instance, when XRP peaked at $2.8, its MVRV stood at 6.50. Similarly, the MVRV reached 15 during the time XRP was trading at $3.11 in 2018. In simpler terms, this means that when the MVRV ratio surpasses 6.5 or 15 for an altcoin like XRP, it might suggest a possible end to its upward price movement.

In simpler terms, it appears that the current prices indicate a robust market, as there’s potential for further increase before the Market Value to Realized Value (MVRV) ratio reaches 7.

Ultimately, optimism among XRP’s investors is palpable, demonstrated by a favorable Bitmex basis ratio. This positive ratio signifies a significant interest in long positions, as it indicates that investors are betting that the price will increase due to their bullish sentiment.

As a crypto investor, I’ve noticed that XRP has been moving laterally for the past two weeks. However, it seems that the altcoin could be primed for a breakout at this point in time.

As an analyst, I’m confidently projecting that a breakout from the current consolidation could propel XRP towards $2.88. Should XRP surpass this level, it would indicate a strong bullish momentum and potentially set a new all-time high (ATH), as there appears to be no substantial resistance above this point. However, if the bullish push falters, we might see XRP dipping down to around $2.

2025-01-05 03:03

Assessing the market sentiment

What do XRP’s charts say?

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