Over the weekend, XRP, the native cryptocurrency of Ripple Labs’ XRP Ledger, increased by more than 40%, rising from US$1 to US$1.47, its highest level in three years. At the time of writing, XRP was trading at $1.35 USD.
The latest jump in XRP price came after a surge in demand from retail traders. The price jumped from $0.55 to as high as $1.58 within the last 2 weeks.
In XRP’s weekly price map, Brandt noticed a trend he described as a “possible inverted head-and-shoulders with a stunted right shoulder.” XRP’s price has quadrupled this year, and it recently surpassed $1 for the first time since 2018, giving it a market capitalization of $37 billion.
The trend “would suggest rates a boatload higher” to new all-time highs, according to the analyst. Factor LLC’s CEO, Brandt, tweets
Three price troughs, the middle one being the lowest, and a trendline connecting the high points of the two retracements make up an inverted head-and-shoulders pattern. Once an asset establishes a firm foothold above the neckline hurdle, a breakout or bullish reversal is verified.
A further rise in buying pressure around the current price levels could push XRP’s price by another 90% toward its Jan. 2018 all-time high of $3.30 or higher.
Profits Attracted Investors:
Despite the fact that the odds seem to be in favour of the bulls, the Market Value to Realized Value (MVRV) index implies that profit-taking could be on the way.
The 30-day MVRV has now surpassed 100% for the second time in XRP’s history. The last time this on-chain metric exceeded this level was in early January 2018, when the bull market in 2017 was at its height.
Since the majority of the tokens in circulation are benefit, XRP holders may be interested to sell at the current price to recover some of their losses.
Although the 30-day MVRV remains in the “danger zone” and Ripple’s legality is still up in the air, anyone trading XRP can use tight stop-loss orders to prevent possible losses.
The world’s 4th largest digital currency is now up by nearly 600% since the start of this year. XRP was trading near $1.93 at the time of writing.