- Analysts say that after finding support to curb a 20 percent dip that kicked off in early November, XRP could gain 15 percent to $0.68 this week after positive market developments.
- The key announcement in recent days is the move by HSBC to use technology by Metaco, a company owned by Ripple, to build its digital asset custody solution.
After a downward spiral that began on November 7, XRP seems to have finally found support above $0.58 and is gradually reversing the trend. According to analysts, this could be the beginning of a price surge that leads to at least 15 percent gains in XRP, analysts say.
At press time, XRP is changing hands at $0.6095. It has gained a measly 1 percent although the crypto’s trading volume has continued to dip. At $32.8 billion, XRP is the fifth-largest cryptocurrency in the market.
According to one analyst, we could be in for a 15 percent turnaround. He pointed to the formation of an inverted Head-and-Shoulders pattern on the token’s price chart over the past three days. The 15 percent turnaround is a conservative estimate, with some analysts predicting that this pattern shows the token will accelerate to $1.234, a 100 percent spike.
The analyst notes that currently, there’s buying pressure that’s bound to push the price all the way up to $0.7186. It could slightly retrace, but to maintain this pattern, it will have to close the day above $0.6820. In a bullish scenario, XRP could break the $0.8 barrier which could serve as the foundation for more gains.
Conversely, if bears invade the market, XRP could lose momentum and support above $0.59. This could lead to a spiral that takes the token all the way down to consolidate just above $0.474. If it closes below $0,5981, it’s unlikely to hop on a bullish trend.
Why $0.774 is a Critical Price Point for XRP
Since March last year, XRP has been on an inverse head-and-shoulders price graph. This is when an asset price has three distinctive dips, with the central one significantly deeper than the two on either side. A line drawn to connect the peaks of these swing lows shows the asset’s price resistance.
To break from this pattern, the asset needs to record a significant close above this resistance line and it’s usually followed by a surge of at least 60 percent.
For XRP, the peak is a close above $0.774 and the upside could see the token hit at least $1.234. The last time it achieved this level was in November 2021.
Ripple’s partnerships continue to be one of the biggest tailwinds for the asset. The most recent is with HSBC, the European banking behemoth which announced that it’s set to use Metaco’s technology to build its digital asset custody platform. While the custody solution won’t involve crypto, it’s still bullish for XRP as any victories for Ripple usually translate to price gains for the asset.
Metaco CEO Adrien Treccani noted this ‘indirect link’ between Ripple, XRP Ledger, and XRP recently, stating, “Every success of Ripple the company is also a success for the XRP Ledger.”
