What to Know:
- XRP capital expansion continues to shape long-term price action.
- Technical indicators point to a possible bullish reversal for XRP.
- Analysts believe XRP could target $5, with $20 possible in an overshooting rally.
XRP capital expansion remains in focus as the token falls nearly 13% from its May peak of $1.54 to about $1.34 amid broader crypto market weakness. However, some analysts argue the decline does not damage XRP’s long-term structure.
Korean analyst Ninedex argues that XRP still follows a long-term ascending channel that has guided the asset since 2013. According to him, the current pullback is part of a bigger XRP capital expansion pattern that could eventually push prices toward $5 and possibly even $20.
The analyst believes XRP changed permanently after the 2014 to 2016 cycle. During that period, XRP moved from being a small altcoin into one of the largest assets in crypto. Since then, it has traded mostly inside the middle section of its long-term channel.
Also Read: XRP Price Consolidation Near End As $56 Target Enters Focus
XRP Capital Expansion Supports Long-Term Structure
Chart data shows XRP spent its first years trading in the lower section of the channel. That changed during the powerful 2017 rally. XRP climbed into the middle range in May 2017 before surging above $3 in early 2018.
The rally briefly pushed XRP into the upper channel. However, the sharp correction that followed forced the token back into the middle range. Even so, XRP avoided falling into the lower section again.
Ninedex believes this matters. In his view, XRP holding the middle channel for nearly eight years proves it remains one of the market’s major assets. He also pointed to a strong support zone around the $1.4 level, which aligns with the Fibonacci 0.382 level.
According to the analyst, the market built this support between 2022 and 2024. Despite recent weakness, XRP continues to defend it.
XRP Capital Expansion Could Fuel a $20 Rally
Ninedex also highlighted bullish technical signals. The long-term stochastic indicator rebounded from oversold conditions, while the MACD recently formed a golden cross. Both signals suggest momentum may be turning positive again.
For now, the biggest resistance remains the $2 level. If XRP clears that barrier, the analyst believes a move toward $5 could happen without major difficulty.
Still, the bigger target has caught attention. Ninedex believes XRP could repeat the explosive rally seen in 2018. If that happens and XRP breaks into the upper channel again, the price could eventually surge toward $20.
Also Read: XRP Price Alert: Futures Open Interest Falls Sharply As $1.55 High Triggers Massive Sell-Off Cycle
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