The price of XRP has just decreased by more than 4% in the past 24 hours despite Ripple winning the SEC lawsuit. Market analysts still expect XRP to rise strongly.
The price of XRP is under short-term pressure due to Ripple's unexpected unlocking of 1 billion tokens, but the long-term trend based on technical analysis forecasts a potential rise to $11 in the coming months.
MAIN CONTENT
XRP dropped 4% after Ripple won the SEC lawsuit but still has strong growth potential.
XRP has broken the bullish flag pattern on the weekly chart, opening up the possibility of rising to $11.
The price is affected in the short term by Ripple's unlocking of 1 billion XRP worth $3.28 billion.
How is the XRP price developing in the short term?
XRP declined after hitting a strong resistance level around $3.35–$3.40 and is currently hovering around the support area of $3.08–$3.15. This is an expected move based on market behavior and technical price balance areas on the chart.
This decline is also explained by Ripple unlocking 1 billion XRP tokens, exceeding expected supply volumes in the market. Although Ripple's CTO, David Schwartz, confirmed this is a routine process, the sudden unlocking of tokens has caused temporary downward price pressure.
Additionally, upcoming economic and political events such as U.S. CPI data and progress in Russia-Ukraine peace talks also make investors cautious, leading to a reduction in investment risk in the short term.
How can XRP grow after breaking the bullish flag pattern?
According to analyst Ali Martinez, XRP has broken the bullish flag pattern on the weekly chart, which is a strong signal for the next upward move. He predicts XRP could reach $11 in the coming months if this trend continues.
XRP is at a potential 'breakout point' after escaping an accumulation correction pattern on the chart, paving the way for the next strong rally.
Ali Martinez – Market Analyst, 2024
The bullish flag pattern is a type of technical pattern that often signals the continuation of an upward trend. The recent breakout of a strong resistance level reinforces the view that XRP's upward momentum still has significant room in the cryptocurrency market.
Why does the unlocking of 1 billion XRP by Ripple affect the price?
The unlocking of tokens worth approximately $3.28 billion occurred rapidly over 3 transactions, creating a sudden supply that negatively impacted market sentiment and put downward pressure on XRP.
Although Ripple stated this is a routine and controlled activity, the sudden change in circulating token quantity caused investors to react negatively, leading to short-term price adjustments.
Our token unlocking process always follows a strict schedule to ensure stability for the XRP market.
David Schwartz – CTO of Ripple, August 2024
What factors affect the price of XRP in the coming week?
Key economic data such as the U.S. CPI index and progress in Russia-Ukraine peace negotiations are significant risk factors. Investors tend to reduce risk ahead of these fluctuations.
Therefore, XRP may continue to test support around the $3.10 level, and short-term downward pressure may persist until the market has clearer information.
Frequently Asked Questions
Why did the price of XRP drop despite Ripple winning the lawsuit?
The price drop is primarily due to Ripple's sudden unlocking of 1 billion XRP tokens, causing an increase in supply and downward pressure on the market in the short term.
What price can XRP reach in the near future?
Technical analysis shows XRP has the potential to rise to $11 based on the bullish flag pattern on the weekly chart.
Does Ripple's token unlocking occur frequently?
The unlocking of tokens is a routine process; however, this time it occurred more abruptly than usual, creating a temporary negative impact on XRP prices.
What events will affect XRP prices next week?
U.S. CPI data and developments in the Russia-Ukraine peace talks are forecasted to strongly impact investor sentiment and XRP prices.
How to effectively invest in XRP in the current context?
Investors should closely monitor technical support and macroeconomic events, manage risks, and avoid hasty decisions during volatile periods.
Source: https://tintucbitcoin.com/xrp-nham-gia-11-usd-giua-khoa/
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