XRP’s price movement has been slow recently; it remains around $0.53 and is down 7% over the past month.
Many investors are frustrated to see the altcoin stagnating after a recent small surge.
Despite the weak performance, technical analysts are starting to see possible signs of a major move despite the negative vibe; if XRP manages to cross a key Fibonacci retracement level, they project a strong recovery.
Market analyst Random Crypto Pal believes that XRP is about to explode explosively.
On social media, he shares his observation and emphasizes the importance of the 0.236 Fibonacci level, which XRP has not yet reached but is approaching.
If this level breaks, he expects a price explosion similar to that seen in 2017.
Once#XRPbreaks above 0.236 Fibonacci, the 2017#XRPEXPLOSION is upon us.
The 0.236 level that analysts have on their radar would see a price just above $0.80.
XRP is currently trading at $0.548, so a gain of approximately 45% would be needed to reach that level.
Once this $0.80 threshold is reached, huge returns can quickly appear for the coin.
In 2017, XRP broke through the 0.236 Fibonacci resistance and continued on a bullish trajectory that culminated in an all-time high in January 2018.
The historical parallel gives analysts hope that history may repeat itself, but unless XRP can break this resistance level, it is not really possible to predict if or when the rally may occur, nor the magnitude of the price increase.
One major hurdle that could dampen this confidence is XRP’s protracted legal dispute with the U.S. Securities and Exchange Commission (SEC).
The ambiguity surrounding this dispute continues to weigh on investor sentiment.
The SEC has classified most altcoins as investment contracts; however, XRP has endured the most intense scrutiny, making it one of the most legally complicated digital currencies available.
The court's ruling that XRP is not a security constituted a major victory for Ripple Labs, but it was almost challenged by an SEC appeal.
The ongoing lawsuit between Ripple and the SEC creates uncertainty about how long the cryptocurrency will face this uncertainty.
Therefore, XRP could present a path to survival through institutional investment, despite the legal ambiguity.
Bitwise and Canary Capital appear to believe in the coin as they push for a US-based XRP ETF.
This tool would definitely improve XRP’s position and may attract more investment.
Furthermore, advancements in the XRP Ledger are fostering a bullish sentiment among the community.
The potential for XRP to break above $0.80 and start a new surge is yet to be determined.
However, due to the influence of technical, legal and institutional considerations, investors are closely monitoring future developments.
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