XRP, the 5th-largest cryptocurrency, may be gearing up for a rally, as per some analysts.
Glassnode co-founder Negentropic suggests that the current crypto environment’s volatility could lead to gains in large-cap coins, including XRP.
XRP reached highs of around $0.55 in early October following a positive court decision for Ripple in the SEC case.
Ripple, the 5th-largest cryptocurrency, could be gearing up for a rally, according to some analysts weighing market risk factors.
Glassnode co-founder Negentropic recently tweeted that the current volatile crypto environment may set up willing risk-takers for gains in large-cap coins, including Ripple.
He cited declining risk levels similar to those before previous major uptrends. This suggests the market could be on the cusp of another significant bullish move.
XRP rallied to highs around $0.55 in early October after a favorable court decision for Ripple versus the SEC. However, some profit-taking has since pulled back prices.
At the time of writing, the coin is trading at $0.51. But the coin appears to be carving out a base after a recent death cross event.
XRP has historically crossed major price bottoms
Historically, XRP death crosses have marked major price bottoms. The current consolidation could lay the groundwork for fresh upside.
Meanwhile, Ripple is seen having the upper hand against the SEC in ongoing litigation. A potential settlement could remove regulatory overhangs on XRP.
While still a speculative bet, technical and fundamental factors indicate Ripple may have room to run. The volatile market could set the stage for opportunistic traders to capitalize on outsized gains.
But taking a position in XRP requires accepting substantial risk. However, analysts say current conditions reflect a favorable risk-reward scenario for a rebound.