Ripple (XRP) price is at a crossroads, with a top analyst saying that it risks crashing by 70% or surging by 700%. This mixed forecast comes as Bitcoin and most altcoins teeter from macroeconomic uncertainty caused by the ongoing trade war between China and the US.
Wedge Pattern Places XRP Price At a Crossroads
According to analyst EGRAG CRYPTO, XRP price had formed an ascending broadening wedge pattern. However, the direction of the wedge breakout remains uncertain.
In his analysis, EGRAG noted that for a solid bullish breakout from this wedge pattern, XRP needed to close above the $3.50 price level. Doing so would kickstart the surge towards the $5 range, where it will likely face rejection.
If Ripple price eyes gains and makes a decisive close above $5, it could spark a rally to double digits within weeks. Per the analysis, this altcoin will post a 700%l surge to 417.
However, despite this bullish thesis, headwinds still lie ahead. Analyst EGRAG noted there was only a 30% chance for this breakout to occur. Meanwhile, there is a 70% chance that XRP might make a bearish breakout from this pattern, which will fuel a 70% crash to $0.65.
This mixed XRP price prediction shows that XRP is at a crossroads with no clear direction for a breakout. However, if there is a bullish catalyst like a spot ETF filing by BlackRock and the US Treasury mentioning XRP as part of a digital asset stockpile, it will support the upward momentum to $17.
XRP Short Liquidations Hit 2-Week High
XRP price trades at $2.13 with a slight 3.3% gain in 24 hours. These gains have triggered a surge in short liquidations. Data from Coinglass shows that in the last 24 hours, XRP short liquidations have surged to $7.3M, which is the highest in more than two weeks.
When short sellers are liquidated, their positions are closed by buying the asset. Therefore, these short liquidations are behind the gains in Ripple price and could accelerate the uptrend, which will push the altcoin higher.
These liquidations have also caused a shift in funding rates. In the last two days, XRP funding rates have been deeply negative, indicating that traders opened short positions after the price approached the critical support level of $2. However, after the recent gains, these traders are now going long on XRP, showing optimism towards a price recovery.
To sum up, XRP price seems to be at a pivotal point. A spike in buying pressure and Ripple whale activity might push Ripple toward $17. However, failure to hold levels above $2 might cause a crash to $0.65.
Frequently Asked Questions (FAQs)
According to a top analyst, XRP price can crash by 70% to $0.65 if it forms a bearish breakout from an ascending broadening wedge pattern. However, if it flips resistance, it may spark a 700% rally.
If XRP price resumes the uptrend and gains above $5 to break out from an ascending broadening wedge pattern, it could spark a rally to $17.
Ripple’s funding rates have flipped positive in the last 24 hours after recovering from a sharp decline to the negative region. This indicates traders may be opening new long positions.
muthoni
Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience dissecting blockchain trends, price movements, and market dynamics. With a sharp eye for technical analysis and an in-depth understanding of on-chain metrics, she delivers insightful, data-driven content that helps investors navigate the fast-paced world of digital assets.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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