- XRP rose above the important $2.50 level over the weekend
- However, the $2.20 level remains an important support level to watch.
- Mike McGlone expressed confusion over XRP’s rising value.
Over the weekend, XRP saw a price recovery, breaking out from its recent low and overcoming the first bull flag that has been forming for the past couple of weeks. This move has been closely tracked, with expectations of a bull flag pattern developing, similar to the last point of support (LPS) phase in a market accumulation cycle.
As the new week begins, XRP is experiencing some backtesting, which is expected to be short-lived as the market stabilizes. Analysts suggest that this price action is part of a larger bullish structure, with a possible second bull flag forming.
Currently, XRP is holding key support levels, with $2.20 being a crucial point to watch. As long as XRP remains above this level, the bullish outlook stays intact.
If the price dips below this mark, it could mean a trap, though it is still too early to draw any conclusions. Analysts believe that if the current pattern continues, XRP could be on the verge of a major breakout, though a break below $2 would alter the overall market sentiment.
Related: XRP Holds $2.5 as Analysts Predict Breakout or Retest to $2 Support
Bloomberg Analyst Questions XRP’s Price Rise
Bloomberg’s Mike McGlone opened up about the growing volume in the crypto market, saying that Tether and XRP have nearly identical market caps, around $100 to $140 billion. Despite this, he expressed doubt over XRP’s value. With stablecoins offering fast & cheap transactions with a sense of security, he questioned what makes XRP stand out.
However, CEO and co-founder of CoinRoutes, Dave Weisberger offered a different perspective, explaining that XRP’s potential lies in its use within the financial system. He believes XRP could be a key player in the future of digital payments, particularly through its ledger technology, which might underpin new stablecoins or replace traditional systems like SWIFT.
Weisberger’s valuation for XRP, based on this belief, is between $7 and $10—far from the lofty predictions of some XRP enthusiasts. Weisberger, who holds a small position in XRP, views it as a solid investment with the possibility of steady returns, without the expectation of massive, speculative gains.
Related: Ripple Defends Its Stance as XRP Price Claims Go Viral
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
