The cryptocurrency market is witnessing interesting developments. XRP Coin, which has been stagnant for years due to its legal battle with the SEC, has witnessed an explosion. So, is it too late to buy XRP after reaching a 7-year high?
The market is in awe of its performance!
Meanwhile, significant capital inflows into XRP continue. In the last 24 hours, XRP Coin recorded an inflow of nearly $28 billion. This brought its market capitalization to $135.2 billion at the time of writing. This inflow has propelled XRP to the third largest cryptocurrency in the world by market capitalization. In terms of price action, the token was trading at $2.37. This reflects an increase of over 24.6% in the last 24 hours. Over the past week, the token has surged by over 61%. Moreover, its gains over the last month have exceeded 363%.
Does investing in XRP Coin make sense?
XRP has established a solid upward trajectory after years of consolidation. The question then arises: Is it too late to invest in the token? At its current valuation, XRP Coin is relatively cheap and shows potential for further growth. An analyst pseudonym Mags opined in an X post on whether to invest in XRP. According to the analyst, XRP is trading at $2.37, significantly higher than the last accumulation phase. Therefore, it may not offer the same risk-reward ratio as it once did.
More gains are possible. However, Mags notes that the most profitable opportunities often arise during low volatility and sideways price movements. To that end, he says he plans to close 75% of his XRP holdings following the recent price spike. He also explains that he intends to focus on projects with higher upside potential that have not yet seen similar rallies.
Price target and buying strategy for XRP
Meanwhile, despite taking partial profits, the analyst remains bullish on XRP. Moreover, he estimates its potential price target at $4 during this market cycle. The analyst suggests that XRP is currently in its parabolic phase. Thus, he advises investors to wait for the asset to re-enter the accumulation phase before buying. According to him, XRP Coin follows four phases. These are: the boom top, the first bounce, the accumulation, and the parabolic phases. He emphasizes that the first three phases give the ideal opportunity to invest.
Driving forces of the XRP Coin rally
As you have been following on Kriptokoin.com, XRP’s resurgence was driven by Donald Trump’s election victory and Gary Gensler’s announcement that he will step down as Chairman of the Securities and Exchange Commission (SEC). The rally also coincided with news that the New York Department of Financial Services may approve Ripple’s RLUSD stablecoin, which is expected to launch on December 4th. In addition, speculation surrounding a potential XRP ETF has also fueled the asset’s token. If such a product is approved, it could propel XRP to new heights.
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