The price of XRP, the native token of Ripple, has been on a rollercoaster ride in recent years. After reaching a peak of nearly $2 in April 2021, it has been in a downward motion, leaving investors wondering if a comeback is on the horizon.
However, a recent analysis by market analyst Jonathan Carter suggests that XRP might be on the verge of a significant breakout.
XRP Stuck In Symmetrical Triangle
Carter’s prediction hinges on a technical chart pattern known as a symmetrical triangle. This pattern typically forms during periods of consolidation, with prices bouncing between converging upper and lower trendlines.
XRP has been trading within this triangle for several years, indicating a potential struggle between buyers and sellers.
Support Retest Fuels Breakout Hopes
The recent price drop in April, which mirrored a broader market correction, saw XRP retest the lower trendline of the symmetrical triangle.
In technical analysis, such a retest is often seen as a precursor to a breakout, where the price decisively breaks through one of the trendlines. Carter believes this retest signifies an imminent upswing for XRP.
Ripple is bouncing from the lower trendline of a symmetrical triangle on the weekly chart🧐
A successful breakout above this triangle would be a bullish signal with mid-term targets at $0.93 and $1.68🎯 pic.twitter.com/sbZXfEYMCM
— Jonathan Carter (@JohncyCrypto) May 6, 2024
Undervalued XRP? MVRV Ratio Hints At Opportunity
Adding fuel to the fire is the MVRV Ratio, a metric used to gauge whether an asset is overvalued or undervalued. XRP’s current MVRV sits at a low -0.5733, suggesting that the token is trading significantly below its historical average price.
This could be interpreted as a sign of undervaluation, potentially attracting investors seeking undervalued opportunities.
Analyst Projects Mid-Term Target Of $1.68
Carter forecasts an initial spike towards $0.93, a level that XRP briefly touched in July 2023 after a favorable verdict in the current SEC dispute, should a breakout from the symmetrical triangle occur.
XRP market cap currently at $28.8 billion. Chart: TradingView.com
Carter, however, thinks that XRP will overcome this resistance level this time around in order to reach its more ambitious mid-term goal of $1.68. It would take an incredible 213% increase from the current price of $0.53 to reach this goal.
XRP seven-day price action. Source: CoinMarketCap
Experts Urge Caution…
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