On Friday, the crypto market witnessed a week-long easing of selling pressure mainly caused by geopolitical tensions in the Middle East. With Bitcoin holding $60,000 support, most major altcoins including XRP are rebounding towards a new price rally. Will the reversal develop into a sustained recovery, like with Nvidia stock, or waiting for a rebound and selling?
Is it a mistake to sell XRP too soon? Experts point out similarities with NVIDIA stock price surge
This week, XRP price saw a notable correction from Thursday’s low of $0.665 to a low of $0.506, accounting for a 23.7% low. This sharp revision can be attributed to the ongoing conflict between Israel and Iran and the US Department of Justice’s appeal of an earlier ruling that fined Ripple $125 million.
If the legal battle continues, the XRP price recovery could stall again and the current consolation could be prolonged. Despite the market uncertainty, famous trader EGRAG recently shared his optimistic view on XRP.
The tweet features a chart of Nvidia’s stock price and highlights that Cathie Wood sold off assets right before the big bull market. The timing of the sale is noteworthy, as the value of Nvidia stock has increased significantly due to growing demand for AI.
Don’t be like Cathie Wood who sold her Nvidia stock here. #XRP #cipher pic.twitter.com/YM3C3aTmXK
— EGRAG CRYPTO (@egragcrypto) October 3, 2024
With XRP price stuck in a long-term consolidation, the potential rally could push a major uptrend.
Ripple Eye soars 14% as price breaks above key $0.5 support
With an intraday increase of 2%, XRP price is trying to maintain psychological support above $0.5. This level represents an important buildup for buyers, as the previous retest triggered a 33% rally in September.
Therefore, a reversal in XRP price from $0.5 would indicate an acceleration of bullish momentum, leading to a 14% surge and potentially challenging the long-standing triangle pattern resistance. The potential upside would see the daily exponential moving averages (20, 50, 100, 200) recover and encourage buyers with appropriate support.
Conversely, if XRP falls below the $0.5 support, selling pressure will increase and the asset could plummet to $0.45 or $0.4.
Frequently asked questions (FAQ)
Expert comparisons highlight Nvidia’s significant bull run after Cathie Wood’s decline and suggest a similar potential for XRP to rise despite the recent correction.
The $0.5 level serves as important psychological support for XRP and if buyers can sustain that level, it could replenish the bullish momentum and lead to a 14% surge.
Selling XRP early could be a mistake, as experts compare its potential upside to the surge after NVIDIA’s sale. Holding the key $0.5 support could lead to a 14% rally and signal a bullish reversal.
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Sahil Mahadik
Sahil is a dedicated full-time trader with over 3 years of experience in financial markets. He has a strong grasp of technical analysis and keeps a close eye on daily price movements of top assets and indices. Drawn by his fascination with financial products, Sahil enthusiastically embraced the emerging field of cryptocurrencies and continues to explore opportunities driven by his passion for trading.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
