- Bitget Chief Analyst Ryan Lee forecasted that XRP has more room left for a short-term rally between $4 and $4.86.
- XRP ETF anticipation and key developments within XRPL fuel a long-term positive outlook for the crypto asset.
Ryan Lee, Chief Analyst of Bitget, recently offered a reassuring insight on the current state of XRP. According to him, the token has been riding on the euphoria of the prospect of the next altcoin season as it surged to a multi-year high of $3.66 in mid-July.
Bitget Says There’s Nothing Alarming with the Latest Moves of XRP
XRP’s recent consolidation at $3.20 has shaken up the cryptocurrency community. Bitcoin’s (BTC) dominance returning to the 60% level didn’t help either, as it cooled people’s expectation for an alt season.
However, Lee assured that the event was just part of the usual profit-taking, especially for investors who had gotten in early on XRP before its price exploded above the $3 range. It’s also worth noting that the consolidation wasn’t confined only to the token’s ecosystem. The same phenomenon happened across other top market cap altcoins last week as investors rotated their capital between them and Bitcoin.
A Bullish Setup Building Up
On the bright side, Lee stated that his technical analysis points to a bullish setup building up within XRP. He firmly believes the token can rally between $4 and $4.86 if it breaks out from its key resistance range around $3.40 and $3.66.
Additionally, the Bitget analyst claimed that retail optimism in XRP is strong. He said that “low unit bias” and high anticipation of the repetition of the crypto asset’s historic rallies is fueling their views.
On the other hand, Lee advised investors to watch out for the $2.99, $2.80, and $2.60 support zones. He warned that monitoring them is crucial in avoiding bull traps.
XRP ETF Anticipation and Use Case Expansion Fueling Positive Outlook
Lee explained that the US Securities and Exchange Commission’s (SEC) approval of XRP exchange-traded funds (ETFs) would catalyze the token’s potential breakout from its key resistance, or even beyond its prevailing all-time high of $3.84. Citing the assessment of Bloomberg ETF experts James Seyffart and Eric Balchunas, he said that the regulator has a 95% chance of giving its nod to these new investment instruments on or before the final deadline in October.
Moreover, the Bitget analyst noted that the continuous expansion of the XRP Ledger’s (XRPL) use cases paints a positive outlook for its native token. One of the latest updates within its ecosystem is the introduction of the Firelight protocol, which addresses the past criticisms centered on the chain’s limited programmability.
Bitget considers the Firelight upgrade a game-changer in the XRP ecosystem because it opens the chain to decentralized finance (DeFi) opportunities like lending and liquidity mining. These don’t even include Ripple’s aggressive advancements in bringing its XRPL-powered solutions to traditional banks and financial institutions.
Overall, ongoing developments reinforce XRP’s long-term viability outside its short-term fluctuations.
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