Ripple’s recent sales of XRP have sparked concerns among investors as the price of the cryptocurrency reacts negatively. However, one analyst expects XRP to recover and make a run to $6 by December, drawing similarities between the current trajectory and the one recorded in November 2020.
Ripple’s victory over the US Securities and Exchange Commission (SEC) has had a positive impact on various aspects of XRP. The price of XRP broke key resistance points, reaching $0.8 before pulling back to its current price of $0.686905. Additionally, Ripple has sold a total of 2.22 billion XRP in the first half of 2023, with monthly sales averaging around 315 million XRP. This represents a significant increase compared to the 200 million monthly average recorded in the previous year. However, investors are concerned about the increase in sales and the potential negative implications on the XRP market performance.
Ripple’s decision to sell XRPs is driven by several reasons, including funding its operations and investments, engaging in partnerships, and supporting projects in the ecosystem. The goal is to create a robust and sustainable market environment through diverse ownership of XRP. However, the increased sales have coincided with a bearish market sentiment, leading to a 5 percent fall in the price of XRP in the last 24 hours.
Despite the current market conditions, analysts believe that the XRP price is oversold and expect a potential bounce back after bears finish selling their profits from the recent run. In the past month and year-to-date periods, XRP has retained 41 percent and 103 percent of its valuation, respectively. The impact of the court ruling, confirming XRP as a non-security token, is still in effect and could further contribute to the price recovery as exchanges make efforts to relist the asset.
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CoinsKid, an expert technical analyst, predicts that XRP could experience a pullback to $0.54 before staging another move up the price curve to hit around $6 by December. This prediction is based on the analysis of the weekly chart of XRP and the similarities between the current trajectory and the one recorded in November 2020. In November 2020, XRP surged by 219 percent to reach $0.7841 from $0.2453. However, it couldn’t sustain its price point due to the SEC lawsuit against Ripple, which sent the XRP price down to $0.1729 in December. In April 2021, XRP staged another comeback, reaching $1.9695 after surging by 1,039 percent. Therefore, the analyst expects potential resistance and minor declines before a significant rise of 720 percent. Another influencer, BitBoy, also predicts that XRP could hit $35.
In conclusion, while Ripple’s recent XRP sales have raised concerns among investors and caused a negative reaction in the price, analysts remain optimistic about the future of XRP. They believe that the current market conditions present an opportunity for XRP to recover and potentially reach a higher price point, with predictions ranging from $6 to $35. The impact of Ripple’s legal victory and efforts to relist XRP on exchanges are expected to contribute to the price recovery in the coming months. However, investors should conduct their own research and exercise caution when making decisions related to cryptocurrencies.
