XRP Price Analysis: Breakout Scenarios and Key Profit-Taking Strategies
- XRP may break out above $2.27, signaling a bullish trend as traders monitor key price levels for the next move.
- For stability, XRP needs consolidation to allow EMAs to catch up, preventing a sudden price drop in the short term.
- Investors can reduce risk by using incremental sales or securing initial capital before taking additional profits.
XRP is back in the spotlight in the crypto space as its behaviour suggests that there may be a change in trend underway. Traders are paying attention for indications that XRP is poised to either rally or stagnate. On Friday in an X post, Egrag painted a picture of two possible paths that the cryptocurrency may take in the short-term.
In the first scenario, XRP may have a breakout at $2.27 and $2.50. If this happens, XRP could be set to surge higher, which will be indicative of the start of a buyers trend. On the other hand, the second possible scenario has XRP falling to $2.27 and then range bound between $2.17 and $2.27. This range could break out into a-double bottom pattern which is considered as an indication of a bullish reversal.
XRPs EMA Analysis and Outlook
Experts said that the price of XRP is currently trading above the Exponential Moving Averages (EMA) on the higher time frames. Therefore, the price may have to make some more consolidation in order for the EMAs to play catch up. This would make it possible to establish a more stable environment for the future and prevent a sudden decrease in the prices.
For Ripple investors, it is crucial to be in a position where they are sure of the amount of profit to be made in the volatile market. Egrag has provided the following strategies, all of which are specific to certain risk levels. A third approach involves percentage selling where the investor liquidates 25% of their stock at each price target i.e., T1, T2, and T3 and h olding a Moon Bag for future appreciation.
Long-Term Investment Strategy
Another method proposed is the incremental sales where the investors are expected to sell stake in small lots of 5% each time the price appreciates by $0.50. This makes it possible for investors to earn their returns while at the same reducing their exposure to risks. For the more cautious investor, he recommends to get out with the initial investment when the price of XRP hits the take profit mark which will be enough to buy the initial investment in Ripple token.
Long-term investors may also get a advantage of buying XRP for 10-15 years, excluding short fluctuations of the asset price and receiving profits from the long-term investment. He also notes that some investors may like to switch profits into low-cap assets for higher risk, higher returns, but he also note that it is best to do a proper research.
While token is still on its price journey, it becomes crucial to have a proper plan in place. This means that investors have to consider their risk appetite while being ready to adapt to change in the market in order to make the most profit.
Read more: https://www.tronweekly.com/xrp-price-analysis-breakout-scenarios-and-key/
Text source: TronWeekly
