April 17, 2021

CEX.IO company blog | Ripple has updated its three-year high - what's next for cryptocurrency?

Today, the value of the XRP token has renewed its three-year high, breaking the $ 1 mark.

Yuri Mazur, Manager of the data analysis department of CEX.IO Broker, gave his comment on the situation for Forklog.

XRP is one of the brightest and most dynamiccryptocurrencies on the market, however, at the end of last year, its prospects were clouded by the SEC's claim against the leadership of Ripple. XRP / USD reacted immediately with a significant decline, and while other digital assets showed significant gains, XRP was forced to stay at its local lows. It is worth noting that in a sense, Ripple became a victim of asset recalibration - that is, investors, fixing profits on XRP / USD, immediately switched to other cryptocurrencies, the coin's capitalization began to fall sharply, and XRP lost its place in the top four cryptocurrencies.

What's going on now?In our opinion, Ripple's current growth is catching up on lost momentum, which is supported by both the influx of new investors and the return of old players. New investors in Ripple are attracted by the certainty and clarity of the boundaries of potential growth. If we take the values ​​on April 6, according to the CEX.IO exchange, the value of the ripple reached $ 0.9736, the potential for the asset's probable growth is the levels of $ 3.2 - $ 3.7. The second group consists of those investors who have invested in XRP at its peak and near-peak values. It is profitable for them to raise the price of an asset in order to optimize their losses. It is not yet clear which investors prevail, but the main factor for all market participants, of course, will be the SEC factor. If market participants get a hint of a favorable outcome for Ripple, XRP / USD is likely to not only return to its 2018 peak, but also update all-time highs.

Technically speaking, XRP / USD is coming outin the position of the second wave of growth, while other assets are in anticipation of the third wave. In our opinion, XRP / USD growth is likely to be initially limited by the resistance zone around $ 1 - $ 1.2, from which there will be a slight correction. Then, with a favorable fundamental background, a sharp rise to $ 3.2 is quite possible. Nevertheless, if the fundamental background with the SEC lawsuit indicates a negative scenario, the correction from the $ 1 - $ 1.2 levels will turn into a downtrend. So far, the likelihood of both events is about the same, so you need to carefully monitor the news and any shift in risks towards a decrease in Ripple.

Read the full material here.

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