In a recent YouTube video, renowned crypto analyst Lark Davis delves into the complex possibilities surrounding XRP. He addresses the burning question: Is it too late to buy XRP in the current bull market cycle? Let’s explore his insights and what they mean for potential investors.
XRP Witnessing a Significant Downtrend Break
Davis highlights that XRP has remained a top 10 cryptocurrency since 2015, despite facing legal challenges and stiff competition. He points out a significant downtrend break occurring at present. According to Davis, “if this breakout finds its legs and gains some strength, the price of XRP could see a noticeable increase.”
Reflecting on XRP’s historical performance, Davis recalls its explosive surge to $3.20 during the 2017 bull market. However, he notes that the cryptocurrency underperformed in 2021, largely due to the ongoing SEC case against Ripple. While Davis dismisses overly optimistic price predictions like $589, he considers a $6 to $7 price target reasonable for the next cycle, indicating a potential 6x return from current levels.
Key Indicators Impacting XRP
In his analysis, Davis examines crucial markers such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD). He observes that the MACD recently exhibited a bullish cross, while XRP’s RSI remains in the overbought zone, a common occurrence during bull markets. These indicators suggest an upward momentum, although temporary corrections may still occur.
Could Gensler’s Resignation Impact XRP?
Davis speculates that the resignation of SEC Chair Gary Gensler might serve as a pivotal moment for XRP. A change in administration could potentially lead to the dismissal of the lawsuit, thereby influencing XRP’s price trajectory. He also acknowledges the impact of stablecoins’ rising acceptance and the emergence of competitors like Solana, which have challenged XRP’s unique value proposition of low-cost, fast transactions. Nevertheless, Ripple’s ongoing partnerships with governments and banks, particularly in building CBDCs, may renew interest in the asset.
While Davis considers the $6 to $7 range plausible, he suggests that reaching higher targets, such as $10 or $11, would require an unprecedented market cap share for XRP. He advises that it is not too late to invest in XRP, predicting it could outperform Bitcoin with a 2:1 or even 3:1 ratio during the bull market cycle. However, Davis cautions viewers to remain realistic about XRP’s potential, urging them to avoid being swayed by exaggerated price forecasts of $100, $20, or even $50, which he deems unrealistic.
Is Something Big Coming Up for XRP?
Armando Pantoja, a crypto investor, recently shared an intriguing observation in an X post. He noted that XRP whales accumulated 453.3 million XRP, valued at $526 million, within a week amid growing price anticipation. These whales, holding between 1 million and 10 million XRP, now control 18% of XRP’s circulating supply. This marks the most substantial accumulation by whales in almost three years, suggesting that something significant may be on the horizon for XRP.
In conclusion, while XRP faces challenges, there are promising indicators and developments that could influence its future trajectory. As always, potential investors should conduct thorough research and exercise caution when making investment decisions.
