XRP, the digital asset native to Ripple’s network, is showing promising signs of a potential breakout after a prolonged seven-year period of consolidation, according to crypto analyst Armando Pantoja. Pantoja, a seasoned investor, has pointed to XRP’s chart, highlighting a symmetrical triangle pattern that has held for years. This technical formation is often considered a precursor to a major price movement, with historical data suggesting that XRP could experience a significant upward breakout.
$XRP is currently breaking 7-year consolidation. $100 is definitely in range.
— Armando Pantoja (@_TallGuyTycoon) November 2, 2024
Despite prolonged low volatility and hovering around the 200-day EMA, Firing Gary Gensler will be the catalyst for a bullish reversal.
💎 #XRP #Crypto #BullRun2024 pic.twitter.com/qci2ZlZc6f
For the last several years, XRP has traded within this tight range, characteristic of a consolidation phase. These types of patterns are typically followed by a substantial price shift, and given the current setup, Pantoja believes XRP could follow a similar trajectory as it did during its all-time high in 2018, when the asset surged to $3.84.
Technical Indicators Point to Potential Growth
Pantoja’s analysis also brings attention to XRP’s low volatility, which is seen as a bullish signal. Additionally, the digital asset is currently positioned near the 200-day Exponential Moving Average (EMA), a key technical indicator that suggests a market poised for significant movement. These factors combined paint a picture of a market that is in a prime position to make a big move, fueling optimism among investors and analysts alike.
While a $100 price target for XRP may seem ambitious, Pantoja suggests that it’s not entirely out of the question, but would require patience. He emphasizes that while such a target isn’t for the near future, XRP could experience substantial growth in the ongoing bull market. XRP’s loyal community, known as the “XRP Army,” shares similar hopes for the token’s long-term value, driven by both technicals and its consistent performance around the 200-day EMA.
Ripple’s Allocation of 470 Million XRP Tokens Sparks Market Concerns
Ripple’s market activities are also influencing the outlook for XRP. On November 1, 2024, Ripple allocated 470 million XRP tokens for potential sale. This marks the largest monthly allocation since Ripple introduced its escrow system in 2017, which was designed to ensure transparency and stability in the market. Typically, Ripple releases about 1 billion XRP from escrow each month, with around 800 million returned. However, the additional 270 million tokens this month raised some concerns about potential downward pressure on the token’s price due to increased liquidity.
This large allocation follows several unexpected escrow events in 2024, including delayed releases earlier in the year. A similar sale in June, involving 400 million XRP, resulted in a 20% price drop over the course of a week. Such large-scale transactions are closely watched by market participants, and the additional tokens could impact the price of XRP in the short term.
Also Read: Ripple vs. SEC Appeal: How Trump’s Election Could Impact XRP’s Future and Regulatory Clarity in 2025
XRP’s Future: Legal Challenges and Market Sentiment
XRP’s future is also shaped by broader market dynamics and ongoing regulatory challenges. Ripple’s legal battle with the U.S. Securities and Exchange Commission (SEC) remains a major uncertainty, although there is speculation that a change in SEC leadership could help resolve the case in Ripple’s favor. If Ripple wins, it could lead to regulatory clarity, which could attract more institutional and retail investors to the token.
As of the latest data, XRP is trading at $0.5138, having surged 1.97% in the past day but showing a slight decline of 1.17% over the past week. Investors are closely watching these developments as they evaluate the potential for a breakout and the future price trajectory of XRP.
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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