XRP has faced a tough year, lagging behind the surging gains of other major cryptocurrencies. With a recent decline of over 15% since the start of the week, it contrasts sharply with the 20% gains seen by top assets. Yet, amid this downturn, many crypto enthusiasts argue that XRP presents a prime buying opportunity, hinting at a potential breakout. So, could this be the moment XRP has been waiting for? Let’s explore why some believe now might be the perfect time to invest in XRP.
Accumulation Phase – A Potential Goldmine?
Crypto advocate Levi suggests that XRP is currently in an accumulation phase. This period, characterized by steady buying at lower prices, could be the ideal setup for investors looking to capitalize on future gains. Levi’s analysis of the 1-hour chart indicates that XRP might be on the brink of a breakout. For long-term holders, this could be an opportune time to use a dollar-cost averaging (DCA) strategy. By buying at these lower prices, investors might position themselves for significant gains if XRP follows the anticipated bullish trend.
Key Levels to Monitor
Crypto analyst Dark Defender provides an optimistic outlook based on a 3-month chart featuring key Fibonacci extensions. According to this analysis, XRP has already surpassed the 23.6% level at $0.3941. Next, attention should be focused on the 70.2% level at $0.6640 and the 100% level at $0.9327. If XRP can break through these levels, it might signal even stronger bullish momentum, paving the way for potential gains.
Signs of a Possible Recovery
Recent price action shows that XRP is attempting a recovery, having risen above critical resistance levels such as $0.5280, $0.5320, and $0.5350. A successful move beyond $0.5450 could see XRP targeting the next resistance levels at $0.5550 and possibly $0.5720. Should the momentum persist, XRP might even test the $0.5950 or $0.600 mark.
However, failure to surpass the $0.540 resistance could lead to a price drop. Initial support levels are expected around $0.5320, with further support near $0.5225, aligning with the 50% Fibonacci retracement level.
Currently trading at approximately $0.53 and down 1.3% in the past 24 hours, XRP holds a market cap of $29.9 billion. Despite its recent struggles, the cryptocurrency’s potential for a breakout and the current buying signals suggest that investors may want to keep a close eye on XRP in the coming weeks.
In summary, while XRP has had a challenging year, the current market conditions and technical indicators suggest that now might be the time for investors to consider buying. With the possibility of a significant price surge on the horizon, XRP could offer substantial gains for those who act wisely.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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