TL;DR
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Analysts are confident in XRP’s ability to stay above key breakout levels, with some predicting a potential rally toward $9.
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While most forecasts remain optimistic, on-chain metrics show a decline in user activity, which could slow the asset’s momentum.
XRP Shows a ‘Great Sign of Strength’
The past few weeks have been quite eventful for the cryptocurrency market, which endured substantial turbulence. Ripple’s XRP was not excluded from the volatility, with its price tanking to a local low below $2 on March 11 and later heading north to the current $2.28 (per CoinGecko’s data), representing a 3.5% increase on a daily scale.
According to some analysts, the asset has yet to show its potential during this cycle. The X user Crypto General recently told their 230,000 followers that XRP has been holding above the breakout level of $0.94, describing the development as “a great sign of strength.”
The market observer also said that the price has retested the support levels and seems ready for the next move to the upside.
“My target for the short term would be around $9. But overall, I am even more bullish, being a USA project and all the cases by SEC have been taken back, it is bound to pump hard,” they stated.
Recall that the US Securities and Exchange Commission recently dropped or dismissed multiple lawsuits against crypto businesses. While the lawsuit versus Ripple remains ongoing, some experts suggested a resolution might occur in the following weeks.
CRYPTOWZRD also chipped in, albeit making a less bullish forecast. The analyst claimed that XRP closed its latest daily candle slightly bullish as XRP/BTC “also pushed higher.”
“We should see more bullish movement from XRP/BTC, which should help XRP get an impulsive upside move towards the $2.80 resistance target, with $2.05 being the main support target,” they added.
Traders, Beware of This Signal
The X user Ali Martinez was not so optimistic about XRP’s price performance in the near future. He warned traders that the TD Sequential flashed a sell signal on the 4-hour chart, indicating a possible wave of profit-taking.
Additionally, numerous XRP-related on-chain metrics have headed south in the past 24 hours. Those include the number of payments from one account to another, the number of active accounts, the number of executed transactions, and more.
This decline hints at reduced user engagement and lower network adoption, which, in turn, could trigger a downward pressure on the valuation.
