A crypto analyst recently identified a crucial selling opportunity for XRP, setting the ideal exit price at $3.33. The analyst advises that this is currently the best moment to divest from the token to avert significant losses, predicting a sharp decline that may lead to new price lows.
On January 23, a TradingView analyst using the pseudonym 'Comeon25' shared an analysis of XRP based on the Elliott Wave Theory. He projects an imminent price downturn and advises investors to sell at $3.33 before a forecasted market correction takes place.
The chart analysis illustrates that Waves 1 and 2 of XRP's Elliott Wave cycle involved a consolidation phase, while Wave 3 saw strong upward momentum bringing considerable gains. In contrast, Wave 4, which is the focus of current predictions, is expected to initiate a significant corrective phase. The analyst foresees a price drop to the 5 Fibonacci retracement level, potentially targeting $2.5 as a new low.
According to CoinMarketCap, XRP is currently trading at approximately $3.12. A decline to $2.5 would represent an estimated 20% loss. With this prospective correction in mind, the $3.33 mark is advised as the last viable point to sell the altcoin at a higher value.
The TradingView analyst suggests a timeline for the anticipated crash, estimating that the Wave 4 correction could commence shortly and continue until March 25, 2025. This projected timeframe offers a window for investors to divest their XRP holdings to minimize financial losses.
Despite warnings of an impending XRP price drop, the TradingView analyst also highlights several positive long-term factors for the cryptocurrency. One key optimistic factor is the potential for a pro-crypto stance under Donald Trump's leadership, which could establish a supportive regulatory climate for digital currencies.
Additionally, the prospect of Ripple relocating to the United States presents another significant positive indicator. Such a move could align with the U.S.'s increasing pro-crypto agenda, providing Ripple with enhanced regulatory certainty. The analyst also points to recent adoption achievements, such as Japanese banks planning to use the XRP network for improved cross-border payments.
While considering XRP’s positive fundamentals, the analyst's chart also identifies a "buy area" between $2.00 and $2.50 during the expected Wave 4 correction. This range could offer a strategic entry point to capitalize on potential upward movements in the projected final Wave 5 of the Elliott Wave cycle.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.