XRP might rally 120% in 6 months if this correction scenario plays out
The value of XRP remains a focal point in the crypto space, fueled by expectations of an impending rally following the partial regulatory clarity the token received. While the asset currently aligns with the broader market rally, there’s a prevailing anticipation that XRP is poised for further surge.
In this line, crypto analyst AlanSantana, in a December 1 TradingView post, suggested that XRP is facing a potential rally of 120% in the next six months. The analysis is based on two correction scenarios that could propel XRP to new heights, challenging the highs of July when the court declared the token not a security in the Ripple and Securities Exchange Commission (SEC) case.
In the analysis, if XRP corrects to approximately $0.51, the token is poised to experience a rally of around 85% within the next six months. However, should XRP correct to even lower levels, approximately $0.43, the token could potentially initiate a more substantial rally, reaching up to 120%.
“It can be there because it pierced higher and is producing a retrace, but overall it would be about 50% higher than what we see today or 85% (blue) to 120% (red) higher if one of these correction scenarios becomes the future,” he said.
While acknowledging the normal retracement since July, the chart analysis revealed a triangle-top pattern, historically indicative of temporary declines before upward surges.
XRP’s next price target
Looking beyond the short-term forecast, the analyst suggested a long-term potential price of around $5 based on past calculations. However, he cautioned that predicting future prices becomes intricate during a super-cycle.
“Around $5 is the result of past calculations but you would need to look at around and find the old charts. If we go into a super-cycle it can be something impossible to guess… But the future is bright, expect to see more than anything you can think of or guess,” he said.
At the same time, he acknowledged that XRP has the potential to grow even when Bitcoin (BTC) corrects, suggesting a level of independence from broader market trends.
In the interim, the SEC case continues to cast a shadow over XRP despite gaining regulatory clarity. There were initial expectations that the token might experience a significant rally after the court’s reproval.
As reported by Finbold, Bill Morgan, a pro-Ripple lawyer, expressed concern about the ‘very strange’ XRP price movement following the regulatory clarity, pointing out that the SEC battle prevented XRP from maintaining momentum with its peers.
Notably, there is speculation about the case potentially settling after the SEC conducted a closed meeting on November 30 to address crucial issues, including the “resolution of litigation claims.” This has fueled speculations that a potential settlement with Ripple might be imminent.
XRP price analysis
By press time, XRP was trading at $0.63, reflecting daily gains of about 2.77%. On the weekly chart, XRP shows a 0.5% decrease.
In terms of technical analysis, bullish sentiments dominate XRP. A summary of one-day indicators from TradingView suggests a ‘buy’ sentiment at 14, with moving averages signaling a ‘strong buy’ at 13. Oscillators are indicating a ‘neutral’ position at 9.
Overall, XRP’s prospects are significantly influenced by the trajectory of the general cryptocurrency market.
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