There are indications that the price of XRP, the cryptocurrency of Ripple, could potentially reach $3. This is supported by recent buying trends and a reliable indicator that has accurately predicted price changes in the past.
XRP has experienced a rollercoaster ride in the market. According to data from CoinMarketCap, it has seen a 4.4% slump in the previous seven days, but has slightly risen by 0.14% in the last 24 hours. Currently priced at $0.5044 with a market cap of around $27.92 billion, the fear and greed index, which measures market mood, has fallen into the fear zone at 38%. Despite these challenging circumstances, there is hope for a turnaround in the coming weeks.
Renowned cryptocurrency analyst Milkybull has drawn attention to a “rare” indicator that has accurately predicted XRP’s price changes in the past. This indicator successfully predicted XRP’s price reaching $1.9, which it did at $1.79. It now estimates a conservative bullish target for the current cycle to be between $2.4 and $3.
Further analysis by Santiment reveals that XRP’s MVRV ratio is still negative at -2%, indicating a potential undervaluation. The increase in exchange outflow and a sharp decline in token supply on the market suggest strong buying pressure, even though the NVT ratio indicates overvaluation. The presence of whale activity complicates the market dynamics.
On the legal front, Ripple’s ongoing case with the SEC appears to be nearing its end. Stuart Alderoty, the Chief Legal Officer of Ripple, has stated that the current legal processes are almost finished. This could potentially be a game-changer for XRP, removing a significant obstacle that has impacted its market performance.
Minor upticks in the money flow index and relative strength index on the daily chart suggest a potential reversal of the downtrend for XRP. However, overcoming this obstacle and reaching $3 will require more than just positive signs; it will require a strong market reaction and favorable legal news.
In conclusion, there is optimism surrounding XRP’s future price potential. With the SEC case nearing its conclusion and the support of a reliable indicator, XRP could potentially reach $3.