A prominent technical analyst believes that $XRP it may be on the verge of a massive 230% recovery based on a price pattern similar to what happened with Bitcoin ($BTC) after the launch of Exchange-Traded Funds (ETFs).
1. The analyst sees this similarity to understand this expectation; we must go back in time a bit to the event of the Bitcoin ETF launch:
Bitcoin (BTC) Scenario:
•Before the event: Bitcoin's price saw a significant increase in anticipation of ETF fund approvals.
•After the event (selling on the news): Once the funds were launched, what is known as "Sell the News" happened. Investors took their profits, leading to a sharp correction and a nearly 20% drop in BTC price.
•Subsequent recovery: After the selling wave ended and a new bottom was established, Bitcoin began a strong upward wave that exceeded its previous peaks.
•Identical pattern in XRP (according to analysis):
•Initial spike: XRP experienced a significant price increase after the historic court ruling that it is not a security in itself.
•"Selling on the news": Just like Bitcoin, after this legal victory, XRP's price entered a correction and profit-taking phase, leading to a drop from its recent peak.
•Current stage: The analyst sees that XRP is now in the "accumulation" phase after the decline, which is the same phase Bitcoin went through before its major surge.
•2 What are the price targets based on this identical pattern? The analyst sets ambitious price targets: First target (recovery of 230%): It is expected that the price $XRP will rise from its current levels to the $1.88 area. This represents a full recovery of losses and the beginning of a new upward wave.
•Second target (historical peak): If the momentum continues, the price may target its previous historical peak at $3.84.
•3. Why is this analysis important
(Bullish)? Market psychology: This analysis shows that price movements are not solely based on news but also on investor reactions. The pattern of "buying on rumor, selling on news" is a classic pattern that recurs in financial markets.
If XRP follows this path, it will be a strong confirmation that the currency has completed its long corrective phase and is ready to join the market's bullish cycle (Bull Run).
