TL;DR
- Analysts are confident in XRP’s ability to stay above key breakout levels, with some predicting a potential rally toward $9.
- While most forecasts remain optimistic, on-chain metrics show a decline in user activity, which could slow the asset’s momentum.
XRP Shows a ‘Great Sign of Strength’
The past few weeks have been quite eventful for the cryptocurrency market, which endured substantial turbulence. Ripple’s XRP was not excluded from the volatility, with its price tanking to a local low below $2 on March 11 and later heading north to the current $2.28 (per CoinGecko’s data), representing a 3.5% increase on a daily scale.
According to some analysts, the asset has yet to show its potential during this cycle. The user Crypto General recently noted that XRP has been holding above the breakout level of $0.94, describing the development as “a great sign of strength.” This was seen as an indication of resilience in the market with the possibility of further growth.
The market observer also stated that the price has retested the support levels and seems ready for the next move to the upside.
“My target for the short term would be around $9. But overall, I am even more bullish, being a USA project and all the cases by SEC have been taken back, it is bound to pump hard,” they stated.
It’s notable that the US Securities and Exchange Commission recently dropped or dismissed multiple lawsuits against crypto businesses. While the lawsuit against Ripple remains ongoing, some experts suggest a resolution might occur in the following weeks.
CRYPTOWZRD also offered insights, albeit with a slightly more cautious forecast. The analyst claimed that XRP closed its latest daily candle slightly bullish as XRP/BTC “also pushed higher.”
“We should see more bullish movement from XRP/BTC, which should help XRP get an impulsive upside move towards the $2.80 resistance target, with $2.05 being the main support target,” they added.
Traders, Beware of This Signal
In contrast, the user Ali Martinez was not so optimistic about XRP’s price performance in the near future. He warned traders that the TD Sequential flashed a sell signal on the 4-hour chart, indicating a possible wave of profit-taking.
Additionally, numerous XRP-related on-chain metrics have shown declines in the past 24 hours. These metrics include the number of payments from one account to another, the number of active accounts, and the number of executed transactions, all pointing towards reduced user engagement and lower network adoption. This trend could trigger downward pressure on XRP’s valuation.
The cryptocurrency market remains unpredictable, and while some analysts hold a bullish outlook for XRP, others advise caution due to the recent declines in user activity. Continued observation of market trends and metrics will be crucial for stakeholders moving forward.
