XRP Eyes Significant Gains: Technical and Fundamental Analysis
XRP Technical Indicators Signal Potential Surge
XRP’s current technical setup hints at a potential 107% surge, as revealed by the crypto analyst known by the pseudonym Master Ananda. In a recent TradingView analysis dated August 22, Ananda highlighted that XRP identified a key support level during the week of July 28. Since then, the cryptocurrency has been forming higher lows, indicating a strengthening trend.
The recent price action has encountered resistance at the 13-day exponential moving average (EMA). However, the selling pressure was quickly absorbed, leading to a swift recovery of losses, which is a bullish indicator. Ananda suggests that this quick rebound implies the retracement phase has likely concluded, paving the way for further upward movement.
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The recent five-week pullback, which saw XRP dip below $3, aligns with typical retracement periods following a peak, in this case, the one observed on July 14. Now that support has been solidified, Ananda anticipates that XRP will continue its upward trajectory, with the initial price target set at $4.44 and a more ambitious target of $6.28 in the short to mid-term.
XRP Price Fundamentals
In addition to technical signals, XRP’s fundamentals present a promising outlook for a potential rally. The resolution of the Securities and Exchange Commission’s (SEC) legal action against Ripple has shifted focus to the possibility of a spot XRP exchange-traded fund (ETF) approval.
On August 22, several asset management firms, including Canary, CoinShares, Franklin Templeton, 21Shares, WisdomTree, Grayscale, and Bitwise, filed updated registration statements for proposed XRP ETFs. This development followed the formal dismissal of the SEC’s case against Ripple by a federal appeals court, allowing issuers to proceed swiftly. Bloomberg Intelligence now estimates a 95% likelihood of XRP ETF approval.
XRP Price Analysis
As of the latest update, XRP is trading at $3.03, marking a gain of over 7% in the past 24 hours, although it remains 3% lower on a weekly basis. For XRP to achieve new highs, it must maintain support around the $3 mark. A bullish trend in the broader cryptocurrency market could further bolster XRP’s performance.
Conclusion
The convergence of strong technical indicators and supportive fundamentals positions XRP for potential significant gains. With the recent developments in the regulatory landscape and growing optimism around ETF approvals, XRP is poised to capitalize on these factors and potentially reach new price targets. As always, market conditions can shift rapidly, so continuous monitoring is advised for investors and traders.
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