• If these conditions are met, XRP could reach $6

  • XRP’s price action has been an interesting rollercoaster ride over the last four months. From $1.9 to $0.5, the alt made a shooting move. With XRP back above $1.2, the market appears to be targeting higher levels of $1.35, $2.44, and eventually a bounce above $6.39.

    However, are these just wild guesses, or will the rally eventually send XRP soaring above $6.39?

    Is it possible to close the fair-value gap?

    Without a doubt, the Ripple v. SEC lawsuit has had a significant impact on the rise and fall of XRP. The most recent development in the ongoing lawsuit was the SEC’s opposition to Ripple’s motion compelling it to produce documents on its employees’ XRP holdings. The recent influx of updates has exacerbated XRP’s volatility.

    It is important to note, however, that the recent rally was largely fueled by broader market sentiment and Bitcoin’s move. Nonetheless, XRP was seen decoupling from the broader market sentiment and establishing its own rally, as it only required a 25% increase to bridge its fair value gap. Can traders profit from the coin’s current good fortunes?

    As crypto strategist “Dark Defender” pointed out, XRP’s path to $6.39 appeared clear if the cryptocurrency managed to stay above the resistance in daily charts. Furthermore, a weekly close above $1.26-$1.27 was critical for the alt.

    Furthermore, because the asset made higher lows on the 12-hour chart, the possibility of a jump to $6 cannot be ruled out. On XRP charts, the ascending pattern will first target $1.35, then $2.44, and then a bounce towards $6.39.

    Is the market preparing for an uptick?

    A price increase or decrease is usually preceded by high transfer volumes and/or whale movements. Notably, large amounts of XRP have been transferred from accounts to exchanges. According to Whale Alert data, an anonymous wallet sent more than 205 million XRP to Ripple.

    While Bittrex and Upbit exchanged 21 million XRP, Binance and Huobi exchanged 71 million XRP between them. The anticipation of a forthcoming move could have triggered the same.

    While most metrics showed bullish signals for XRP alongside its nearly healthy price action, XRP’s Sharpe ratio fell sharply after recently reaching a 2-year high. A decrease in the Sharpe ratio indicated that XRP provided fewer profits when compared to a risk-free asset.

    However, when it comes to volatile assets such as cryptocurrencies, the Sortino ratio provides a more accurate picture. Notably, XRP’s Sortino ratio was 0.0861, which was much higher than some of the top altcoins like LTC and BNB. A rational investor would prefer an investment with a higher Sortino ratio because it means the investment is earning more return per unit of bad risk.

    As a result, while XRP continued to show resistance, traders could profit from it by trading once it broke the critical $1.3 level, which was not far away at press time.

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