Highlights
- XRP price appears to be at a crossroads after forming an ascending broadening wedge pattern.
- This pattern suggests that Ripple may be on the verge of a 70% crash or a 700% rally.
- XRP saw a surge in short liquidations to a 2-week high after the recent gains, which caused a spike in buying pressure.
Ripple (XRP) price is at a crossroads, with a top analyst saying that it risks crashing by 70% or surging by 700%. This mixed forecast comes as Bitcoin and most altcoins teeter from macroeconomic uncertainty caused by the ongoing trade war between China and the US.
Wedge Pattern Places XRP Price At a Crossroads
According to analyst EGRAG CRYPTO, XRP price had formed an ascending broadening wedge pattern. However, the direction of the wedge breakout remains uncertain.
In his analysis, EGRAG noted that for a solid bullish breakout from this wedge pattern, XRP needed to close above the $3.50 price level. Doing so would kickstart the surge towards the $5 range, where it will likely face rejection.
If Ripple price eyes gains and makes a decisive close above $5, it could spark a rally to double digits within weeks. Per the analysis, this altcoin will post a 700%l surge to 417.
However, despite this bullish thesis, headwinds still lie ahead. Analyst EGRAG noted there was only a 30% chance for this breakout to occur. Meanwhile, there is a 70% chance that XRP might make a bearish breakout from this pattern, which will fuel a 70% crash to $0.65.
This mixed XRP price prediction shows that XRP is at a crossroads with no clear direction for a breakout. However, if there is a bullish catalyst like a spot ETF filing by BlackRock and the US Treasury mentioning XRP as part of a digital asset stockpile, it will support the upward momentum to $17.
XRP Short Liquidations Hit 2-Week High
XRP price trades at $2.13 with a slight 3.3% gain in 24 hours. These gains have triggered a surge in short liquidations. Data from Coinglass shows that in the last 24 hours, XRP short liquidations have surged to $7.3M, which is the highest in more than two weeks.
When short sellers are liquidated, their positions are closed by buying the asset. Therefore, these short liquidations are behind the gains in Ripple price and could accelerate the uptrend, which will push the altcoin higher.
These liquidations have also caused a shift in funding rates. In the last two days, XRP funding rates have been deeply negative, indicating that traders opened short positions after the price approached the critical support level of $2. However, after the recent gains, these traders are now going long on XRP, showing optimism towards a price recovery.
To sum up, XRP price seems to be at a pivotal point. A spike in buying pressure and Ripple whale activity might push Ripple toward $17. However, failure to hold levels above $2 might cause a crash to $0.65.
Frequently Asked Questions (FAQs)
1. Will XRP price crash by 70% or gain by 700%?
2. Can Ripple rally to $17 soon?
3. What do Ripple’s funding rates show?
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