In a detailed analysis posted on X, crypto analyst Bobby A (@Bobby_1111888) presents an optimistic outlook for XRP, even in light of the US Securities and Exchange Commission’s decision to challenge the ruling in its case against Ripple Labs. Despite the ongoing regulatory challenges, Bobby’s analysis of the macro charts indicates a positive trend for XRP, countering the potentially negative sentiment created by the SEC’s recent legal actions.
Bobby emphasizes the difference between short-term market reactions often caused by significant legal updates and the actual long-term trends in asset values. “Many forget that, even with news of the SEC lawsuit in 2020, the asset rose from $0.11 to $1.95,” he notes.
XRP Monthly Charts Still Look Promising
The analyst points out that XRP has been on a consistent sideways trend for nearly seven years, which he refers to as a “macro base.” Bobby believes this prolonged period of stabilization is pivotal for gauging the potential for future upward movement.
Related Reading
“The monthly timeframe reveals that following the Bitcoin Halving, during each cyclic shift of the momentum oscillators, the asset [XRP] sees rapid price increases that could begin at any time. This pattern was evident in 2017 and 2020,” Bobby further clarifies.
A key point in Bobby’s analysis revolves around the monthly Bollinger Bands of the XRP/USD chart, a tool used for assessing market volatility and forecasting potential price levels based on historical behavior. “Similar to 2016, the price is closely aligned with all significant higher timeframe moving averages, including the central line of the monthly Bollinger Bands,” the analyst states.
He continues, “While discussing the Bollinger Bands, it’s worth noting that they are currently at their tightest ever in the history of the coin.” This level of tightness suggests XRP is at a crucial juncture where any increase in volatility could trigger a significant price shift.
Related Reading
Interestingly, Bobby sets his target profit zone between the 1.618 Fibonacci extension level at $5.31 and the 4.236 Fibonacci extension level at $13.72. Therefore, his projected returns for this bullish trend range from an impressive 950% to 2,600%.
Bobby postulates that the early movements when volatility resumes may be misleading, designed to confuse market participants about the true price direction. He draws comparisons to Bitcoin’s unexpected surge in March 2020, indicating that XRP could undergo a similar deceptive yet ultimately positive breakout.
“The XRPETH and XRPBTC charts do not indicate this is the onset of a prolonged bear market, but rather a possible capitulation at favorable value levels. Remember, the worst news typically surfaces at the market bottom, while the best news appears at the peak,” Bobby added.
The forthcoming US presidential election could significantly influence the regulatory environment impacting cryptocurrencies like XRP. Bobby speculates about the possible scenarios: “If Donald Trump were to regain the presidency, I cannot foresee any circumstances under which Gary Gensler would continue as chair of the SEC.” He believes a change in the SEC leadership could ease regulatory pressure on Ripple and consequently XRP, creating a more favorable market climate.
In closing, Bobby reaffirms his strong belief in the bullish perspective for XRP. “No one ever claimed this would be easy, and investing seldom is,” he reflects, urging his followers to maintain a strategic, long-term perspective on their investments in XRP.
At the time of this report, XRP’s price was $0.52.
Featured image created with DALL.E, chart from TradingView.com
