September looks like a bad month for XRP price, will it come back above $1?
Pressured by numerous minor crashes during the month, XRP’s 30-day ROI has dropped to over 12%. With little interest from retail traders, XRP price has been unable to catch up with some of its other counterparts. At the time of writing, the sixth-largest coin on CoinMarketCap is trading at $0.947, down 12% in the past seven days.
XRP/USD 4-hour chart | Source: TradingView
Will XRP price come back above $1, perhaps to $1.29?
Since September 7, a crypto analyst from AMBcrypto stated that XRP started forming in a falling wedge pattern – a setup that usually triggers an upward breakout. Now, before realizing such an outcome, it is important to understand the market’s current dynamics.
XRP has been trading below the 200 SMA (green), which is a bearish sign. Moreover, most of its indicators are in bearish control. Combined with a weaker broader market, XRP will suffer more losses before a breakout is expected. These losses can extend to the $0.75-$0.78 support level, warrant a strong reaction from the buyers. Any of the moves below will lead to further bleeding.
If Ripple’s native token shows signs of a reversal between $0.75-$0.78, a rebound on solid volume will increase the chances of returning to the $1 mark. Price ceilings of $1.05, $1.12, and $1.30 will then be challenged.
Based on the factors mentioned above, XRP will continue to decrease in value in the coming days. However, the $0.75-$0.78 support area is XRP’s best bet to trigger an upward breakout from its falling wedge. This will pave the way for a return above $1 and a possible approach to $1.29 in a highly bullish scenario.
Agreeing with this view is also Raoul Pal, the CEO of Real Vision and Global Macro Investor. According to him, XRP price has a tremendous risk-reward ratio despite a lawsuit filed by the U.S. Securities and Exchange Commission (SEC).
Raoul Pal, the CEO of Real Vision and Global Macro Investor
“XRP is a great risk-reward. The lawsuit – we’ve seen every lawsuit, every single one has been fine. Everybody’s cleared up after the event anyway, and these events were a while ago. Bitmex, that’s happening, we’re going to see all of these, so I think it’s going to be a slap on the wrist that it could look like security, there’ll be no admission of guilt on either side, there’ll be a payment of a fine, and then XRP is free to run”, Pal said.
About some factors that will help drive up the price of the coin, Pal identified:
“What’s interesting about XRP is there is quite a lot of use cases. Now, I know many Bitcoin people hate it– it’s not decentralized enough, I don’t care. Are people using it? Yes, a lot more than most people realize, and what’s amazing about this setup is you can’t buy on any of the exchanges, and it’s not in the Bitwise ETF.”
He added: “The Bitwise ETF is now a billion of the Bitwise index. The top 10 index is a billion dollars, so the moment XRP is free, they have to buy a few hundred million dollars in it as everybody else can because the exchanges will have it back, so you’re setting up for a hell of a nice run if this clears up.”
“Worst case it doesn’t? Worst case is, let’s say, 50% downside, the best case is 10x from here, so I’ll take a 50 to 1 risk-reward for the next three to six months”, he said it is still worth betting on XRP despite the possibility of Ripple losing in its legal battle with regulators.
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