Ripple’s XRP May Rise 30% in October, But Risks Remain

The cryptocurrency market has seen a comeback in late 2024 since last week when the US Federal Reserve announced a 50 basis points interest rate cut.

While BTC, ETH, and several altcoins have shown substantial growth, Ripple’s native token has lagged, remaining relatively stable both weekly and monthly. However, October could bring a change, as it is often viewed as a bullish month for cryptocurrencies.

XRP in October

Examining the recent weekly and monthly data, XRP’s performance has been quite disappointing. It has remained stable since the previous week and has only increased by 1.6% from last month. In comparison, BTC has risen by 9% since late August, BNB has climbed over 11%, and DOGE has surged by more than 21%.

In comments to CryptoPotato, Ryan Lee, Chief Analyst at Bitget Research, discussed potential scenarios for Ripple’s token. The optimistic forecast predicts that the seventh-largest cryptocurrency by market capitalization could soar by 30%, reaching $0.75.

This expectation stems from a shift in market sentiment to “extremely optimistic,” which may persist, especially if there are “positive legal developments” in Ripple’s ongoing conflict with the SEC.

“Most analysts and investors highlight the possibility of an upward trend, which may attract more retail investors, potentially driving XRP prices higher,” Lee stated.

From a technical perspective, Lee noted that XRP has broken a significant trendline, often considered a bullish signal. The asset is above the 50-day, 100-day, and 200-day moving averages. Combined with bullish indicators like the MACD and RSI, this could herald a promising October for XRP investors.

The Catch

While the positive prediction presents an encouraging outlook for XRP bulls, Lee also mentioned an alternative scenario—a decline to the $0.45 support level. This could occur if the legal proceedings against the SEC take a turn for the worse, especially with circulating speculation regarding the agency’s potential appeal.

Moreover, Lee cautioned that a high number of analysts forecasting “parabolic growth” in October might inadvertently lead to the opposite effect on XRP’s price. Therefore, he advised investors to be wary of extreme predictions, utilize stop-loss orders, and opt for gradual purchases rather than impulse-driven decisions.