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Given this prevailing sentiment, it can be inferred that achieving a new all-time high in this rally will be challenging for Ripple’s XRP.
There have been talks about various coins reaching their all-time highs (ATH). Bitcoin has recently surpassed its 2021 ATH, and there are already suggestions that it might hit another in the coming months. Ethereum, Solana, and major cryptos are also anticipating new heights this year This buzz has also extended to Ripple (XRP), but what are the chances of this happening?
Ripple’s Price Action Gives Some Hope
The price of XRP has been within a triangle since mid-2022, and it has constantly bounced off the triangle, both as resistance and support. At the base of the triangle, there is an ascending trendline that has consistently acted as strong support for the price. At the top, there is a descending trendline that has been a resistance since August 2021.
The triangle is already becoming slimmer and more compressed, indicating that a breakout is imminent. This could happen in two ways: a breakout above the triangle, triggering a rally, or a breakdown below the triangle, leading to a further dip.
Considering this, for Ripple bulls to consider the possibility of an ATH, they first need to break above the 32-month resistance. A breakout of the triangle is anticipated to initiate a bullish rally toward the top of the pattern, which sits at $1.3. However, even after reaching this level, the price would still have a long way to go before reaching the all-time high price of $3.92.
Technical analysis cannot be the sole determinant of price. Various factors, including market sentiment, also play a role in how high a cryptocurrency can rise during a bullish trajectory. While it may be tempting to assume that a breakout of the years-long resistance would propel XRP towards its previous all-time high, this does not hold true for Ripple in the current market conditions.
Ripple’s XRP Not Affected by Wider Market Sentiment
Ripple’s XRP has unique metrics that set it apart. It is largely uncorrelated with the general crypto market, which can be attributed to various factors. One notable reason is the negative effect of its ongoing battle with the US Securities and Exchange Commission. Ripple is the only major token that did not experience a significant rally during the 2020 bull run. Throughout that period, its price consolidated within the range of $0.1 and $0.5, only experiencing a minor spike in the first quarter of 2021. Taking these factors into account, it becomes evident that the price of XRP is not heavily influenced by broader market sentiment.
Photo: TradingView
What About XRP Sentiment?
The sentiment surrounding XRP does not appear to be favorable to reaching an all-time high at this time. The community seems to be dwindling, and influential figures with large followings are advising against investing in the token. One recent tweet by XRPcryptowolf, a Ripple community member with over 300k followers, expressed disappointment with Ripple’s market behavior. He highlighted how the coin tends to crash quickly when the market is down but fails to pump during market rallies.
Another influencer, Cameron Fous, with over 94k followers, has been straightforward in instructing his community to diversify and sell off their XRP holdings. He believes that investing in other coins will yield greater profitability.
It’s funny how $XRP always crashes alongside the market but it never pumps with the market 😂
— XRPcryptowolf (@XRPcryptowolf) April 2, 2024
Given this prevailing sentiment, it can be inferred that achieving a new all-time high in this rally will be challenging. While technical analysis suggests that a breakout of the long-standing overhead resistance could trigger a bullish rally, a sustained rally would require more positive sentiment and a significant increase in positive on-chain activities, which the coin currently lacks. Perhaps a decisive victory against the SEC could provide the long-awaited boost for XRP holders. However, it is crucial to monitor key metrics, as the price could also experience a crash if the prevailing conditions remain negative.
