On-chain data from mood shows that XRP is still “locked” at current prices and therefore has the potential to grow further. The recent volatile moves in the crypto market have created extreme short-term price sentiment, pushing XRP as low as $ 0.57.

Strength and oversold | The source: mood

In terms of on-chain analysis, Santiment’s “Strength and Oversold” indicator suggests that XRP is showing signs of “undervaluation” relative to its fundamentals. The 8th cryptocurrency by market capitalization is currently trading at $ 0.812, down 1.6% over the past 24 hours.

When the price of an asset suddenly drops below its true value, it is said to be oversold. This usually happens due to an overreaction in the market or panic selling. In this case, it will cause the assets to collapse in a short period of time.

Strength and oversold | The source: mood

XRP started the year at $ 0.21 after falling to a low of $ 0.16 in December 2020 following the SEC announcement of the Ripple lawsuit. According to the SEC lawsuit, Ripple began raising capital in 2013 by selling unregistered securities as a digital XRP asset.

Since then, tokens for cross-border payments have faced a lot of difficulties as they have been delisted from a number of exchanges. Despite these setbacks, Ripple appears fearless and in its Q3 report highlights the “significant growth and attractiveness of ODL”.

Additionally, in 2021 there were many significant partnerships that expanded Ripple’s on-demand liquidity (ODL) solutions to the Middle East. In November, Ripple announced a partnership with the Republic of Palau to explore the country’s first national digital currency using XRPL. A $ 250 million Creator Fund was also launched to encourage NFT creators to join the XRP Ledger and attract more new users.

Investors are waiting for positive results at the XRP price after the SEC lawsuit. According to Ripple CEO Brad Garlinghouse, the dispute is likely to end next year.

XRP can skyrocket 420%

Analyst and trader Michaël van de Poppe examines what XRP is likely to achieve in the coming year.

According to him, XRP is expected to trigger a 140% spike if price can hold the range between $ 0.81 and $ 0.97.

“If these levels continue, there is a good chance of a rally to $ 2 where the price starts to break out and these are the trigger levels ($ 0.9, $ 1 and $ 1, $ 2) … Then the price will go up move vertically. ”

The source: Michael van de Poppe

Van de Poppe uses the Fibonacci expansion tool to point to XRP’s next target points at $ 2.87 and $ 4.33. If XRP works according to Van de Poppe’s scenario, this altcoin could rise more than 420% from its current price.

The analyst noted in the comments below the video that he made these predictions before the XRP price fell over the weekend. However, he did not change anything in his opinion.

Overall, Van de Poppe speak that he doesn’t mind the bearish mood in the cryptocurrency market at the moment.

“The fear index has not been so low since the crash in May, the mood is comparable to a proper funeral. I love it”.

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