The cryptocurrency market has faced a substantial downturn, with Bitcoin and major altcoins experiencing significant losses. Ripple’s native token, XRP, hit a one-year low, dipping below $0.40 on Friday. However, the price has begun to recover, showing a 4.5% increase in the past 24 hours, despite falling from this week’s peak of $0.48 to $0.45.
Analysts are optimistic, predicting a significant rise in XRP’s price. A major near-term catalyst for XRP is the potential for a favorable resolution in the ongoing SEC lawsuit. Initially, the SEC sought a $2 billion fine from Ripple for its token offering, but Ripple has consistently maintained its stance of paying only $10 million.
Recently, the SEC reduced its demand to $102.6 million, yet Ripple continues to stand firm on its original offer. A decisive victory for Ripple or a further reduction in the fine could stabilize and boost XRP’s price through the end of 2025.
Additionally, expanding RippleNet to support applications beyond financial transactions could enhance its appeal to developers of decentralized apps (dApps), crypto tokens, and other digital assets. This expansion could significantly broaden the use cases for XRP, driving up demand and, consequently, its price.
Forecasting XRP’s BullRun
In a recent analysis, crypto analyst Amonyx presented a strong argument for an upcoming bullish trend for Ripple (XRP). He outlines a compelling case for an imminent “BullRun”, offering an optimistic outlook for XRP’s future. Amonyx utilizes historical price patterns and Fibonacci retracement levels to forecast future price movements.
Amonyx highlights two significant periods of upward momentum. The first, spanning from 2014 to 2017, peaked in early 2018. This cycle is illustrated within a green box, showcasing a dramatic price increase that aligns with a 4.236 Fibonacci extension level. Amonyx notes a similar pattern in the recent cycle, where the price action is contained within a converging triangle formation marked by a blue trendline.
Currently, XRP’s price action is consolidating within this triangle pattern, suggesting a build-up of pressure that typically precedes a breakout. He identifies 0.5 Fibonacci retracement level as a critical resistance point, while the lower Fibonacci levels provide robust support. This indicates that the price is awaiting a decisive move.
Amonyx’s projection is notably bullish. He posits that the current consolidation within the triangle pattern sets the stage for a major upward breakout. The green arrows and the label “TOP FIB” on the chart point to a projected price target that aligns with the 4.236 Fibonacci extension level, suggesting a potential rise to approximately $16.14.
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