2024-10-5 11:00 |
The XRP price experienced a notable recovery last week, reaching a seven-month high of $0.665 last Sunday. This surge was primarily driven by a broader market rally and bolstered by excitement surrounding crypto asset manager Bitwise’s filing for an XRP exchange-traded fund (ETF) earlier this week.
However, the enthusiasm was short-lived. XRP has since lost nearly 12% of its value on the weekly time frame, following the US Securities and Exchange Commission’s (SEC) decision to appeal a partial victory for Ripple, the blockchain payments company associated with XRP.
XRP Price Strength During Legal BattlesThe SEC’s appeal has sent ripples through the cryptocurrency community, raising concerns about the future of XRP and its regulatory status. Market expert Bobby A addressed these concerns in a recent social media post, arguing that the macro charts do not indicate the onset of a prolonged bear market for the XRP price due to the appeal.
Instead, Bobby A suggests that such events often lead to missed opportunities for “uninformed or impatient investors” who may react impulsively to market news, and claims that despite these short-term challenges, the token can continue its upward trajectory in the coming months.
The expert points out that the XRP price has shown resilience in the face of regulatory challenges. For example, during the SEC lawsuit that began in 2020, XRP was able to rise from $0.11 to $1.95 despite significant legal headwinds.
Bobby A emphasizes that the XRP price has been consolidating sideways for nearly seven years, indicating a strong macro base that could pave the way for future price appreciation.
No Indications Of A Bear MarketFrom a technical analysis perspective, Bobby A highlights that the monthly time frame for the XRP price reveals critical patterns. Following Bitcoin’s Halving cycles, XRP has historically experienced rapid price surges during cyclical rotations of momentum oscillators. This pattern was evident in previous years, particularly in 2017 and 2020.
Moreover, the Bollinger Bands—a technical indicator that measures market volatility—are currently at their tightest levels in XRP’s history. The expert suggests that tight Bollinger Bands often precede significant price movements, which can be “deceptive at first,” as they may initially mislead market participants.
Bobby A argues that current market conditions should not be misinterpreted as the start of a bear market. Instead, he suggests that XRP is positioned for potential capitulation in “deep value areas.” With legal clarity, a real use case and what he sees as the imminent ETF, he believes XRP is poised for mass adoption.
Finally, the market expert pointed to the upcoming US general election, which could play a crucial role in XRP’s future. Bobby speculated that if former President Donald Trump is re-elected, it could lead to significant changes within the SEC, potentially alleviating some of the regulatory concerns that have plagued the asset.
At the time of writing, XRP is trading at $0.522, up 0.6% over the past 24 hours.
Featured image from DALL-E, chart from TradingView.com
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