XRP may be set for a major price breakout after a seven-year consolidation period, according to analyst Armando Pantoja.
Many expect an upward trend as XRP approaches the end of a symmetrical triangle pattern and trades near its 200-day EMA.
XRP, Ripple’s digital asset, is showing signs of a substantial breakout after seven years of consolidation, according to crypto analyst and investor Armando Pantoja. Pantoja’s chart reveals XRP’s prolonged consolidation within a symmetrical triangle pattern.
This pattern, which is often seen directly before a large price change, has depicted XRP trading within a range for the last several years. Such patterns usually indicate a possible breakout and past data shows that the upward breakout may drive XRP to significant levels.
🔶$XRP is currently breaking 7-year consolidation. $100 is definitely in range.
Despite prolonged low volatility and hovering around the 200-day EMA, Firing Gary Gensler will be the catalyst for a bullish reversal.
💎 #XRP #Crypto #BullRun2024 pic.twitter.com/qci2ZlZc6f
— Armando Pantoja (@_TallGuyTycoon) November 2, 2024
A similar pattern in 2018 contributed to the reaching of XRP’s all-time high at $3.84. According to Pantoja, another factor that speaks in favour of XRP is its low volatility and its position near the 200-day Exponential Moving Average. These indicators paint a picture of a market in a good position to move in a big way, which adds to the hope of XRP’s upward trajectory.
🔶Is $100 Within Reach?
Although $100 is a lofty price target for XRP, Pantoja notes that such a goal is not for the near future but for the future years. He expects it to rise substantially in the current bull market but the $100 might take time in future cycles due to changing market conditions.
The $100 target is plausible according to the passionate XRP supporters called the “XRP Army” who have a similar goal. This is due to technicals as well as XRP hovering around the 200-day EMA seamlessly.
XRP’s outlook is also shaped by broader market sentiment and regulatory factors. Although Ripple faces an ongoing legal battle with the U.S. Securities and Exchange Commission (SEC), speculation surrounds potential changes in SEC leadership.
🔶Ripple’s Largest XRP Allocation in Seven Years
This prediction comes as Ripple recently allocated 470 million XRP tokens for potential sale on November 1, 2024. This move marks Ripple’s largest monthly allocation since it implemented its escrow system in 2017, an action designed to enhance market stability and transparency. Under Ripple’s standard protocol, approximately 1 billion XRP is released from escrow each month, with around 800 million returned. However, November’s allocation stands out, as Ripple designated an additional 270 million tokens for possible distribution.
Ripple’s deviation from its usual protocol follows a year marked by unexpected escrow events. Early in 2024, Ripple encountered multiple failed escrow transactions, resulting in delayed releases until April. While Ripple ultimately fulfilled its scheduled releases, the market has become increasingly sensitive to these large-scale transactions. A similar sale in June, involving 400 million XRP tokens, led to a 20% price drop for XRP over a week.
The allocation of additional XRP tokens raises questions about potential impacts on market price. Large-scale token movements, such as the recent allocation, can introduce downward pressure on prices as liquidity increases. It is worth noting that as of this writing, Ripple (XRP) is trading at $0.5138, having surged 1.97% in the past day and decreased 1.17% over the past week.
