XRP Price Poised for Q4 Rally? $5.40 Target in Sight
XRP Set to Replay Bullish Q4 History
Ripple's [XRP] price action is showing similarities to its previous Q4 cycle, sparking speculation of a potential rally. After a pullback in July, XRP is consolidating, with early indicators suggesting renewed strength. Could this set the stage for a parabolic run towards the end of the year?
Analysis reveals a potential repeat of historical trends. On July 24th, Long-Term Holder (LTH) profit-taking reached $375 million, coinciding with XRP's peak around $3.55. This triggered a 10.33% intraday drop, its largest in over three months.
A key development is XRP's ability to maintain support above $3, potentially mirroring early-Q1 action from the previous year. Back then, the $2 level flipped into strong support, initiating a 60%+ surge to $3.35 by mid-January.
The critical question is whether buyers are anticipating and acting on this setup.
Key Indicators for XRP's Next Breakout
Ripple’s recent consolidation has tested the patience of long-term investors. LTHs often tend to offload holdings as XRP approaches their cost basis. Since January's peak, the cryptocurrency spent five months in sideways movement before climbing 80%+ to a $3.65 high by mid-July.
The $375 million in realized gains suggests a significant profit-taking event. Despite the subsequent retracement to $3, a 6.45% bounce validated the existing buy orders and reinforced the support level.
If this pattern persists, XRP might be replicating its Q4 setup:
- LTHs are selling into strength.
- Structural support is holding firm.
Given a shift towards risk-on sentiment, XRP could see another November-style uptrend. Such a scenario places an 80% rise in play, potentially pushing Ripple towards $5.40 by mid-Q1.
Disclaimer: Cryptocurrency investments are inherently risky. Conduct thorough research and consult financial advisors before making any investment decisions. Platforms like Codeum can assist in assessing the security and reliability of blockchain projects before investing.