XRP hasn’t done too well ever since finding a local top last week. Since peaking at $0.34, the price of the leading cryptocurrency has fallen off dramatically, tanking over 20% to as low as $0.265 or so on Wednesday.
Despite this strong pullback, there remain many analysts that expect for XRP to surge even higher in the coming months. Here’s why.
XRP Showing Signs of Long-Term Breakout to Bull Trend
Prominent market commentator Cal recently noted that XRP’s long-term chart is starting to look bullish, falling through horizontal support that stretches back two years to bounce and smash straight through it shortly afterward, showing that bullish momentum is building. Indeed, he wrote that “I think a lot are underestimating the importance of this,” accentuating that traders may be sleeping on the performance of the cryptocurrency.
He remarked that this move considered, he expects a pullback into the two-year support around $0.21 to $0.24, prior to a strong bounce that will “catapult XRP higher very, very quickly.” His rough forecast estimates a $0.60 XRP price by the end of the year.
$XRP fell through a 2 year support but bounced and just smashed straight through it.
I think a lot are underestimating the importance of this.
If we get a pull back into this 2 year support again I think it will catapult XRP higher very, very quickly. pic.twitter.com/yZU2BHEfns
— Cal▪️ (@caltrades_) February 20, 2020
This forecast was echoed by Financial Survivalism, a trader who called Bitcoin’s surge to $9,200 by mid-January weeks in advance, almost nailing the timing and magnitude of the move.
He remarked in a recent tweet that e expects for the price of the cryptocurrency to rocket towards $0.70 — 160% above the current $0.027 price — after a pullback to the region that Cal expects, around $0.024.
The analyst backed this forecast by looking to a number of factors: the Heiken Ashi candles have turned green on a weekly basis, implying reversal, the cryptocurrency has turned a key horizontal into support, and it has broken above a falling wedge pattern, adding to the bull case.
Short-Term Pullback Possible
While XRP’s long-term outlook is starting to look optimistic once again
Indeed, Cal’s own chart, which is long-term bullish, shows XRP retracing slightly in the coming months, prior to heading higher as 2020 elapses.
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Not to mention, a leading analyst of traditional markets, Peter Brandt, recently suggested that XRP could soon print a bearish chart pattern: a head and shoulders top.
Per previous reports from Ethereum World News, Brandt remarked that should this textbook pattern play out, the cryptocurrency could fall to $0.2071 — around 23% lower than the current market price around $0.27 — for that is where the measured move for this pattern lies.
It will be interesting to see if this H&S top plays out. If so, the target would be .2071.
This Tweet poses a possibility. This is not a prediction. pic.twitter.com/IJiMR2AEnV
— Peter Brandt (@PeterLBrandt) February 20, 2020
Should XRP fall this low, that would mean bulls would be put back to the drawing board, for the cryptocurrency would have broken through the crucial daily and weekly support around $0.27.
Photo by kazuend on Unsplash
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