The cryptocurrency market is ever-evolving, with tokens like XRP often in the spotlight. Renowned crypto analyst Lark Davis recently shared his insights on XRP’s potential in a YouTube video. He tackled the pressing question: Is it too late to buy XRP in this ongoing bull run?
XRP Witnessing a Major Downtrend Break
Despite facing legal hurdles and fierce competition, XRP has maintained its position among the top 10 cryptocurrencies since 2015. Davis pointed out the current significant downtrend break, suggesting a potential rise in XRP’s value. He stated, “If this breakout finds its legs and gains some strength, then the price of XRP is probably going to be marked up significantly.”
Reflecting on XRP’s historical achievements, Davis highlighted its meteoric rise to $3.20 during the 2017 bull market. However, its performance in 2021 was less impressive, largely due to the ongoing SEC lawsuit against Ripple. Although Davis is skeptical about extreme price predictions like $589, he considers a $6 to $7 target plausible in the next cycle. This projection indicates a potential sixfold return from current prices.
Key Indicators Influencing XRP
In his analysis, Davis also examined crucial technical indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD). He observed that the MACD recently showed a bullish cross, while XRP’s RSI remains in the overbought zone, a common scenario during bull markets. These indicators suggest a continuation of upward momentum, although temporary corrections could occur.
Potential Impact of Gensler’s Resignation on XRP
Davis speculated that the resignation of SEC Chair Gary Gensler might serve as a pivotal moment for XRP. A shift in administration could lead to the dismissal of the lawsuit, potentially boosting XRP’s price. Despite the emergence of stablecoins and competitors like Solana, which have challenged XRP’s low-cost, fast transaction benefits, Ripple’s ongoing collaborations with governments and banks, particularly in developing Central Bank Digital Currencies (CBDCs), could renew interest in the asset.
While Davis believes a $6 to $7 price range is feasible, reaching a market cap share that would support a $10 or $11 price would be unprecedented. He emphasized it’s not too late to invest in XRP, predicting it may outperform Bitcoin during the bull market cycle with a 2:1 or even 3:1 ratio. However, he cautioned viewers to remain realistic about XRP’s prospects and avoid getting swayed by unfounded predictions suggesting prices of $20, $50, or $100, which he deems highly unlikely.
Anticipating Major Developments for XRP
In a recent post, crypto investor Armando Pantoja revealed that XRP whales accumulated 453.3 million XRP, valued at $526 million, in just one week amid rising price expectations. These whales, holding between 1 million and 10 million XRP, now control 18% of XRP’s circulating supply. This marks the largest accumulation by whales in nearly three years, leading to speculation that significant developments may be on the horizon for XRP.
As XRP continues to navigate through challenges and opportunities, its future remains a topic of keen interest among investors and analysts alike. Staying informed and cautious are key strategies for anyone considering entering the XRP market.
