Analyst Says XRP Risk-Reward Ratio is “Insane,” Sees $100+ Target

Market analyst Moonshilla believes the risk-reward ratio for XRP is “insanely” good, suggesting the token could be on the verge of a massive rally. 

The market watcher presented three different charts to confirm his thesis. According to him, the XRPUSD, XRP Market Dominance and XRPBTC charts all suggest that XRP is in a favorable position marketwise. 

XRPUSD Consolidation

The XRP/USD chart shows a consolidation phase. Moonshilla pointed out that this consolidation period has almost doubled compared to the previous one seen between 2014 and 2016. 

The chart reveals a symmetrical triangle pattern, which has been developing for 2,191 days. This pattern often leads to a strong breakout. In this case, XRP is close to the apex of the triangle, signaling that a breakout is imminent. 

The last similar pattern, which lasted 1,206 days, led to a massive surge in XRP’s value. If history repeats itself, the current setup could result in another explosive move upward.

XRP Dominance Triple Bottom Formation 

The XRP dominance chart further bolsters this bullish outlook. The chart shows a triple bottom formation, a classic bullish reversal pattern. This pattern occurs when an asset’s price hits the same support level three times without breaking below it. 

The pattern on the dominance chart suggests that XRP has found a strong support level and is now poised to regain market share. A declining trendline above the chart indicates that this period of underperformance might be ending, potentially leading to a significant increase in XRP’s market dominance.

XRP/BTC Shows Quadruple Bottom and Reversal Potential

Meanwhile, the XRP/BTC chart shows a quadruple bottom pattern, another bullish reversal indicator. 

This pattern, similar to the triple bottom, indicates strong support at a particular price level. Notably, XRP has found support against Bitcoin four times, suggesting that the downside is limited, and a reversal is likely.

The chart also features a downward-sloping trendline, which XRP looks ready to challenge. If XRP can break through this trendline, it could signal the start of a new uptrend against Bitcoin.

XRP Poised for an Imminent Run

When these three charts are viewed together, they point to a massive rally in XRP. Moonshilla emphasized that trading is all about balancing risk and reward, and in this case, the potential reward far outweighs the risk.

The analyst drew parallels between the current market conditions and those seen in 2014-2016, a period that preceded a 50,000% increase in XRP’s value within 333 days. 

He acknowledged that it may be hard for investors to believe in such a rally, especially given XRP’s recent performance. However, the historical context and current technical setup suggest that XRP could surprise the market once again.

XRP Boasts “Insane” Risk-Reward Ratio 

Moonshilla also makes a broader case for XRP as a long-term investment. The analyst argues that XRP’s longevity—having been around for over 11 years—sets it apart from other assets, particularly the meme coins that have come and gone in a matter of days or hours. 

He asked investors to secure a position in XRP, even if it’s a small one. The analyst suggests that the risk-reward ratio is too favorable to ignore, especially given the potential for a massive upside. 

He believes that XRP could be the “true ticket to financial freedom.” When asked about his possible target for the future, Moonshilla noted that he imagines a price above $100. This would represent a minimum of 17,477% increase from XRP’s current price of $0.5689.