Published: Jul 4, 2024, 18:38 GMT+00:00
Key Points:
- XRP is at a crucial support level, historically known for sparking sharp bullish reversals.
- Projections suggest a potential surge to $0.95 by the end of 2024 or early 2025, representing over a 100% increase from current levels.
- Increased institutional investment and accumulation by large entities (whales) signal strong confidence in XRP.
The ongoing downtrend in the XRP market has brought its price to a crucial—and giant—support level, historically known for sparking sharp bullish reversals. This key technical juncture hints at a potential XRP price rally, with projections suggesting a surge to $0.95—over a 100% increase from current levels—by the end of 2024 or early 2025.
XRP Stuck Inside a Giant Triangle For Seven Years
XRP’s significant support level is an ascending trendline that has curbed the market’s sharp declines since July 2017.
For instance, this trendline has marked the bottom of major bear cycles, notably from January 2018 to March 2020 and from May 2021 to September 2022. Each time, it ignited significant bullish phases, with XRP prices surging by over 1,000% and 200%, respectively, toward its multi-year descending trendline resistance.
This entire fractal is being repeated in July 2024, with the price eyeing a sharp rebound from the ascending trendline toward the descending trendline at around $0.622, up 40% from the current price levels, by 2024’s end.
But even an older fractal reveals XRP’s possibility of breaking out of its prevailing giant consolidation channel.
XRP is Eyeing a 2017-Like Price Explosion Next
The fractal shows XRP forming a triangle-like structure between 2013 and 2017, reaching the apex—where the upper and the lower trendline converge—and eventually breaking above the upper trendline, rising by approximately 66,200%.
In doing so, the cryptocurrency’s primary upside target for the year’s end or the first quarter of 2025 would be the 0.236 Fibonacci trendline level at around $0.95. That is more than double its price as of July 4.
XRP Fundamental Analysis: Institutional Interest and Whale Activity
XRP’s overly bullish fractal outlook appears on the backdrop of increasing institutional interest and whale sentiment.
The latest weekly report by CoinSharesweekly report by CoinShares reveals a net positive capital flow into XRP-based investment funds. Notably, these vehicles attracted $300,000 in the week ending June 29 — a smaller amount compared to other altcoins like Solana (SOL) and Litecoin (LTC), which witnessed $1.6 million and $1.4 million in inflows in the same period.
From an on-chain perspective, the richest XRP investors have turned to accumulate the coins in recent weeks, according to date resource Santiment.
Notably, the XRP supply held by entities with a balance over 1 billion tokens increased to 41.46% on July 4 from 40.27% at the beginning of the year, coinciding with a drop in the supply held by its immediately lower cohort—those holding between 100 million and 1 billion XRP.
About the Author
Yashu Gola is a journalist focusing on cryptocurrency markets since 2014. He writes for Cointelegraph and CoinChapter and has previously served as the chief editor for NewsBTC.
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