Despite the prevailing bear market, Bitcoin analyst Armando Pantoja believes XRP is poised for a massive surge. In a recent commentary, Pantoja outlined four factors that could propel XRP towards a staggering $20 price tag, representing a mind-blowing 7,637% increase from its current value.
While XRP hasn’t escaped the market carnage, currently down 8.77% this month, Pantoja remains bullish. His prediction hinges on four key factors: Elliott Wave Structure, market resilience, legal clarity, and advancements on the XRP Ledger.
Elliott Wave Pattern
Pantoja observes XRP adhering to an Elliott Wave pattern, a technical analysis tool used to predict future price movements. This pattern, evident in his accompanying monthly chart, suggests XRP is nearing the completion of a five-wave structure. Pantoja highlights a similar pattern preceding XRP’s monumental 7,784% surge in 2017. The theory suggests a significant price surge is likely upon completion of the fifth wave.
XRP’s Market Resilience
Coin has displayed surprising resilience compared to other altcoins amidst the broader market downturn. Pantoja emphasizes this as a significant indicator of XRP’s underlying strength and potential. While the coin is down 8.77% in June, competitors like Bitcoin (BTC) and Ethereum (ETH) have suffered steeper declines of 10.69% and 12.35% respectively.
Legal Clarity for XRP
The ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has cast a long shadow over the coin. However, a crucial victory for the coin came last June when Judge Analisa Torres ruled that the coin itself is not a security. Despite this, the lingering lawsuit discourages some institutions from embracing XRP. A definitive win for Ripple, Pantoja argues, would eliminate these regulatory uncertainties and restore investor confidence, potentially leading to an influx of capital.
Technological Advancements on the XRP Ledger
The XRP Ledger’s recent technological strides factor into Pantoja’s analysis. The introduction of AMM functionality has fueled the growth of the XRPL DeFi ecosystem, with millions of XRP locked in various AMM tools. Furthermore, Ripple is exploring a native lending protocol for the XRPL and the imminent launch of the XRPL EVM sidechain.
Investor Takeaway
While these factors hold the potential to propel XRP’s price, it’s crucial to remember that this is not financial advice. The confluence of these factors may not necessarily guarantee a $20 price tag.The coin currently trades at $0.4698, down 2% over the last 24 hours.