After Bitcoin (BTC) dropped below $100K on Tuesday, top altcoins, including XRP price, suffered a fatal crash. To make matters worse, unconfirmed reports suggest that the US Department of Justice (DoJ) is cleared to sell $6.5 billion BTC. Despite these bearish events, Ripple (XRP) stands tall and shows signs of a strong comeback.
3 Reasons For XRP’s Strong Comeback
After Bitcoin lost the $100K support level, XRP price dropped 6.15% but recovered 7.86% from the bottom, showing strength. Despite the initial selling pressure, unconfirmed reports suggest that the US DoJ is cleared to sell the seized Silkroad BTC worth $6.5 billion.
Despite the bearish news, Ripple remains as strong as ever and shows signs that it could trigger a massive come. Here are three reasons that support this bullish outlook for XRP.
Reason 1: Bullish Momentum Remains Strong
Despite the recent crash and selling pressure, the token has remained almost undisturbed in trading at the same levels before Bitcoin collapsed below $100K. This resilience speaks to the bullish momentum and supports a volatile recovery to the upside should the bearish market conditions vanish.
Reason 2: Major Banks to Use XRP on a Day-to-day Basis
As noted in a previous CoinGape article, Japan’s banks are also rumored to start using XRP.
“Next week, every bank in Japan is set to integrate Ripple’s XRP Ledger, marking a significant development in financial technology. This announcement comes from SBI CEO Yoshitaka Kitao, highlighting the transformative potential of Ripple’s hybrid remittance system.”
In addition to Japan’s SBI, David Stryzewski claims that Bank of America has “integrated XRP for 100% of their internal transaction.”
Reason 3: Bull Flag Hints $15 Target
Since December 3, Ripple price has been hovering inside a bull flag continuation pattern. This setup forecasts that the trend will continue. In this case, the target is $15. The short-term correction caused by BTC’s collapse has not caused a dent in this bullish pattern, further enforcing the strength displayed by Ripple.
In conclusion, despite Bitcoin’s collapse below $100K and the potential sale of $6.5 billion worth of BTC by the US DoJ, XRP’s resilience and strength are undeniable. With strong bullish momentum and major banks poised to adopt XRP, the outlook seems optimistic. Additionally, technicals also reveal a bull flag pattern that forecasts a $15 target. These reasons are why Ripple is primed for a massive comeback despite the market’s bearish outlooks.
Frequently Asked Questions (FAQs)
XRP’s price crashed due to Bitcoin’s collapse below $100K and unconfirmed reports of the US DoJ selling $6.5 billion worth of BTC.
XRP’s resilience, major banks adopting XRP for transactions, and a bull flag pattern hinting at a $15 target are all bullish signs.
Despite the recent downturn, XRP’s fundamentals and technicals suggest a strong comeback, with potential targets at $15.
Akash Girimath
Akash Girimath, an engineer by training, has developed a deep fascination with the complexities of cryptocurrency markets. As a senior reporter and analyst, he specializes in crypto analysis and contributes his expertise to notable platforms such as AMBCrypto and FXStreet. In addition to his analytical work, Akash actively trades cryptocurrencies and manages a small crypto fund for friends and family. His role involves providing insightful market analysis and keeping readers informed about the latest trends in the crypto world. Follow Him on Youtube , X and LInkedIn
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/3-reasons-why-xrp-price-set-for-comeback-amid-dojs-6-5b-btc-sale/
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