Crypto analyst Stephanie has stated that XRP is at a critical decision point, noting that the altcoin could still rally to $2. She also outlined the bearish scenario, in which XRP could still drop below the psychological $1 level.
How XRP Could Rally To $2 As Price Is At A Decision Point
In an X post, Stephanie stated that XRP is a decision point, with a multi-timeframe breakdown forming. She noted tight consolidation, with pressure building on the 4-hour timeframe. Meanwhile, there is a descending wedge on the daily chart, while on the weekly, the price is sitting at major support with an RSI reset underway.
The analyst stated that this is compression before expansion, which could trigger a bullish move. For the bullish trigger, XRP needs to break and hold $1.42, $1.45, and $1.60, which could then lead to a ‘fast’ rally to $2. However, there is also a bearish risk, as a liquidity sweep toward $1 and $0.90 could occur if XRP loses the range between $1.30 and $1.25.
Commenting on the current XRP price action, Stephanie noted that the altcoin has been stuck in chop for months. However, she said that this setup is tighter than before, signaling that a big move is on the horizon. As such, the analyst remarked that it is not a matter of if, but of when and in what direction the altcoin will go.
She alluded to the CLARITY Act, which she suggested could be a catalyst for XRP’s next move, as this week could prove pivotal for the crypto bill. Stephanie added that the market will not wait for the bill to pass before it reacts and that it could do so as soon as the bill’s markup is scheduled.
Now May Be A Good Entry Point
On-chain analytics platform Santiment suggested that now may be a good low-risk entry point for those looking to invest in XRP. This came as the platform cited its weekly social data, which shows that FUD for XRP is at its third-highest level in the past two years. The altcoin notably rebounded at its first and second-highest points of this FUD over the last two years.
Santiment noted that, historically, when this level of bearish commentary replaces bullish comments, the probability of a relief rally increases significantly. They added that price moves in the opposite direction of the crowd’s expectations. As such, with retail investors currently bearish on XRP after a 63% price drop over the last 9 months, this may be the kind of signal that helps investors capitalize on their bearishness.
At the time of writing, the XRP price is trading at around $1.36, up over 2% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Pixabay, chart from Tradingview.com
