Is the XRP’s current price around $2 an opportunity to invest or a sign that the bull market is coming to an end? That’s the question on the minds of many as they watch the cryptocurrency’s performance. In the past two months, XRP has seen a nearly 40% drop, falling to around $2.19 from a multi-year high of $3.40.
Despite this decline, which mirrors a wider market selloff instigated by Trump’s trade war, the SEC’s decision to abandon its case against Ripple and other bullish news, XRP has managed to retain a 350% increase from its November 2024 low of $0.50. This suggests a possible consolidation phase following a robust rally.
However, until XRP experiences a further decline, some analysts do not see a buying opportunity. Crypto analyst, CrediBULL Crypto, for instance, believes the recent bounce attempt that stalled below $2.20 indicates a bearish control. He expects the price to dip to the range lows of around $1.77, which he identifies as a potential entry point for long-term investment.
Notably, a short-term bounce in the market, primarily led by Bitcoin, could instigate a temporary recovery. Nonetheless, CrediBULL argues that only a clean breakout above $3.21 would confirm a bullish trend reversal. Until then, his strategy involves monitoring reactions at the $1.77 support level before committing to a long position.
Interestingly, XRP’s price consolidation between $1.77 and $3.21 might indicate a bull flag, as per analyst Stellar Babe’s interpretation. A bull flag occurs when the price consolidates inside a parallel channel following a strong upswing and typically resolves with a price break above the upper trendline, mirroring the previous uptrend’s height.
If XRP surpasses the flag’s upper boundary at $3.21, Stellar Babe predicts a target of approximately $12, signifying a 450% increase from the current prices.
InvestingScoope’s recent analysis suggests that XRP’s current consolidation phase is within a long-term bullish structure. The analysis highlights XRP’s trading within a five-year ascending channel, with the current pullback resembling the period from March 2020 to April 2021, based on price behavior and momentum indicators. If this pattern persists, XRP could potentially reach a target of $6.50 in the coming months.
However, it’s crucial for investors to remember that every investment and trading move carries risk, and it’s essential to conduct thorough research before making any decisions.
