Why XRP price is ready to pump
- Ripple price is set to trade back above $0.50 as sentiment shifts in favour of bulls.
- XRP price is on a trajectory to rally at least 20%.
- Expect to see a continuous influx of investors and fresh cash into the price action for the rest of the summer.
Ripple price is set to get back in competition with the majors like Ethereum and Bitcoin, as cryptocurrencies looked immune to the Snapchat earnings warning issued late last night. Where equities are on the back foot this morning, XRP price looks disconnected from the correlation and instead appears to be displaying bullish signs to the market in what looks like a classic pennant breakout with plenty of tailwinds behind it. Expect to see XRP price tick $0.48 and possibly stretch to $0.50, booking gains of 20%.
XRP is set to rally where Bitcoin drops the ball
Ripple price is set to book its best week for 2022 as price action is showing signs of a turnaround now bulls are starting to crowd the trade. Inevitably, a breakout will kick in once the pennant formation has completed. With the bullish inflow and demand rising, expect to see that happen anytime soon.
XRP price will trade above $0.4228 after the pennant breaks out, and since that level has been broken many times before, it will not hold much importance. Instead $0.48, is more key with the monthly S1 just above forming a heavy cap refraining bulls from making further gains. Expect to see a short fade and profit-taking against that level, but price action to be contained as bulls stay in for the longer term, making it difficult for bears to short XRP price. A daily close above $0.48 will be crucial going forward, as once the level is tested for support, the rally will slice like a knife through butter straight towards $0.50, at least, and possibly a more extended term rally towards $0.62.
XRP/USD daily chart
Inflation is a crucial theme for 2022, as central banks, businesses, and everyday people feel it hit their pockets. With less expendable funds the risk is that less money flows into cryptocurrencies, which could trigger a lack of investors to support the price action in XRP and other major cryptocurrencies. Expect on the back of that, a constant revaluation to the downside, setting $0.30 back as the next price target in the rebalancing.
Author
Filip Lagaart
FXStreet
Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.
