- One analyst sees a bleak outlook for the price of XRP if it fails to hold the $2.74 support.
- Another suggests it’s rally to $27 based on pent-up momentum within the long-term chart.
- Long-term fundamentals for the asset remain bullish.
A Looming Dip to $2.35
The price of XRP has been struggling between a $2.70 low and a $2.88 high in the first week of September. Ali Martinez, a well-known crypto trader and analyst, warned that XRP must maintain its footing around the $2.74 support, or else, it will risk dropping to $2.35 in the short run.
Martinez grounded his prediction on the daily price action of XRP, which fell within a descending triangle formation. For the uninitiated, this bearish pattern displays a descending upper trendline, representing a continuously weakening price.
XRP Potential Price Rally to $27
On the other hand, a pattern in the XRP chart is fueling anticipation for a double-digit price rally. The pseudonymous Egrag Crypto, another popular technical analyst, observed that the token has already exhibited a double bottom formation in the long-term trend.
Based on the long-term momentum XRP has built over the years, he believes other analysts’ $4 cycle top prediction is a very conservative estimate. According to the established resistances of XRP across the Fibonacci arc he drew, it may be poised for a rally to $27.
Again, for the unfamiliar, a double bottom pattern usually precedes a bullish reversal. It is characterized by a “W” shape, wherein an asset’s price hits a low point before rebounding to a moderate peak, and then dives again to almost the same level as the previous bottom. The final leg represents a decisive uptrend. The near equal price at the support indicates a strong support at the lows, suggesting saturation in selling pressure and buyers gradually gaining control.
Fundamentals Reinforcing XRP’s Long-Term Price Potential
Beyond the high chance of approval of spot XRP exchange-traded funds (ETFs) in the US, which analysts expect to facilitate the flow of more value within the XRP ecosystem, Black Swan Capitalist founder Versan Aljarrah highlighted the growing roles of XRP and the Ripple USD (RLUSD) stablecoin as cross-asset solutions. He said stablecoins aren’t the actual goal, they’re a mechanism for governments and institutions to acquire debt efficiently.
Aljarrah explained that XRP acts as the liquidity bank, bridging assets globally, while gold remains the ultimate real-world anchor. This is how the infrastructure creates a system where stablecoins support XRP’s role, continuously putting upward pressure on its price through bridge settlement. It only goes to show how digital and traditional assets converge in modern finance.
All these underscore XRP’s increasing rate of expansion, wherein its level of adoption will eventually create more demand for the asset in the long run. Meanwhile, the higher demand would ultimately reflect on its price.
Final Thoughts
Martinez and Egrag’s forecasts offer a contrasting outlook on XRP’s short-term and long-term price potentials. However, they fail to account for likely price fluctuations from fundamental and outside factors. Aljarrah’s take, although bullish on XRP’s long-term price potential, stands on a foundation grounded within shaky regulations and complex geoeconomic affairs. Therefore, we strongly advise readers to weigh these things carefully before executing trades.
Furthermore, these projections, while gathered meticulously from reputable sources, do not mean the author or the Blockzeit team’s recommendations. Readers should not construe any of these as financial advice from the mentioned parties.
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