Ripple’s native token XRP fell to a low of $1.78 early Friday and is currently trading at $1.84. The leading altcoin is displaying weaker sentiments, shedding nearly 10% in a week. Fears are rife that a continued downturn could push XRP toward the $1.60 to $1.50 mark. It would come to its November 2024 lows if the scenario plays out and gets back to square one, erasing all profits.
However, analyst Keertivasan took to TradingView, highlighting that XRP’s correction phase could end, leading to an uptick in price. Accumulating the token now at its lowest price point could reward investors next, he wrote. According to his price prediction, XRP could reach $4.22, and he explained that institutional investors could indulge in liquidity hunting.
XRP Projected To Bottom Out in Price
For the uninitiated, liquidity hunting is when large players, especially institutional investors, make prices reach the ‘stop loss’ orders placed by retail traders, initiating a sell-off and grabbing that liquidity to place their own trades. The orders are mostly placed near the support/resistance level, as that’s where retail traders usually keep their stop losses. The analyst claims that liquidity hunting could occur at these levels for XRP.
“XRP/USD is in a correction phase in the weekly time frame. A lot of liquidity needs to be hunted before the next impulse. Once liquidity hunting is done, a strong impulse with the mentioned target in the chart is expected,” he wrote. The chart indicates that the leading altcoin’s upward price target is $4.22.
That’s an uptick and return on investment (ROI) of approximately 120% from its current price of $1.84. Therefore, an investment of $1,000 could turn into $2,200 if the forecast turns out to be accurate. Nonetheless, the market is on the back foot this week with Bitcoin falling to the $86,000 range. It is advised to do thorough research before taking an entry position in XRP.
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