XRP, that is widely used by Ripple Labs in its advanced solutions, is on the verge of breaking out from the downtrend resistance that got it hooked at low prices for more than two full years of the bear market.
The crypto world has been dominated by headlines of the imminent rise of the XRP within the last couple of hours. People are anticipating a breakout from the asset that could produce a huge shock to the crypto market with fast and massive gains that could raise the XRP price to as high as $14.
XRP has always been placed among the most controversial altcoins on the market.
It is believed that crypto investors dislike XRP because it is arguably more centralized than Bitcoin or Ethereum. The firm’s executives always challenge this, though. Nevertheless, whether it does align with the early themes of the reasons behind the creation of cryptocurrencies or not, that does little to demonstrate its progress as a financial asset.
6000% XRP Price Growth Is Possible
Moreover, XRP is one of the most widely used altcoins across banking institutions and cross-border payment services. In fact, XRP has surged in the past from speculation, which ended up producing massive moonshots.
Once again, we can get an indication from the past moonshot in XRP, which could head next once it begins to rally once more after confirming the current breakout of downtrend resistance. According to the record, immediately XRP had its breakout from downtrend resistance, it exploded over 6000%. History could repeat itself.
The indication of a long, pole-like structure that is followed by consolidation at support in a descending manner is the signs of a bull flag. A bull flag is a bullish structure that suggests there’s more upside ahead.
Bull flag targets are calculated by picking the original flag pole and utilizing it to make an estimation of the advance to follow the breakout. After rising by 6000% in the past to form the flag pole, statistics suggest that XRP could leap from its current price of $0.2358 and reach $14 per token.
This is another step in the right direction for Ripple. On December 20, 2019, Coisnpeaker reported a partnership between the company and American money transfer company, MoneyGram, which they claimed could change the payment sector. But of course, it is far not the only partnership of Ripple (but probably one of the most widely discussed).
There was also another report last week that two new partnering companies, Bottomline Technologies and Tranglo are working on integrating Ripple’s technology for their cross-border payments.
It’s also worth mentioning that yesterday an impressively huge XRP transaction was observed. Nearly 50 million XRP tokens were sent from an unknown address to the Bitstamp exchange. At the current price, the tokens value is around $11.5 million. Now, this address holds only 24 XRP tokens. Though there appeared rumors about a possible dump of the XRP price, there is no confirmation for them.
Author Osaemezu Ogwu is a cryptocurrency journalist with several years of experience in the crypto-verse.