Analyst Akash Girimath shared his new comments on XRP, a popular altcoin linked to Ripple. XRP price shows the formation of a W-bottom, which indicates a trend reversal soon. Investors can expect the token to rise 120 percent to $1.35. A daily candlestick near $0.519 will invalidate the bullish thesis for Ripple. Here are the details…
Analyst: Altcoin investors need to be careful
According to Girimath, the XRP price has drawn a massive reversal pattern over the past six months and presents a good buying opportunity. While the outlook is optimistic, investors need to be cautious as Bitcoin’s volatility could upset Ripple’s directional bias. As we reported on Kriptokoin.com, the XRP price formed a double bottom at $ 0.582 in January and May, after falling 55 percent since November 2021. These moves mark the formation of the W-dip pattern, which usually involves a long drop followed by a double retest of a support level after sufficient distance.
The second retest of the bottom could be followed by an impulsive move to the starting point. For Ripple, a retest of the $0.582 lows was followed by a minor increase in bullish momentum forming a local top at $0.917. “Therefore, a decisive daily candlestick above this barrier will confirm the start of the move to $1.35,” Girimath says. This increase from the current position will constitute a 120% rise from the current position. Additionally, this uptrend will face multiple hurdles at $0.917 and $0.998 before hitting its target.
“Asymmetric betting” narrative for XRP
Regardless of the Bullish, a daily candlestick near $0.519 will create a lower low and invalidate the bullish thesis for Ripple. “Given that the upside is 120 percent versus the less than 15 percent risk, this asymmetric bet might be too easy,” Girimath concludes. However, it is worth noting that every investor should invest in line with their own research.
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