Despite XRP lackluster performance, many top crypto industry analysts are optimistic about its future potential. In a recent X post, Evai CEO Matthew Dixon commented on XRP’s price trajectory.
#XRP has been lagging lately but like many other tokens, weaker #CPI next week should awaken the sleeping giant and propel $XRP higher. pic.twitter.com/FEvUZiG7RM
— Matthew Dixon – CEO Evai (@mdtrade) May 10, 2024
While acknowledging that the token lags behind most cryptocurrencies, Dixon believes the anticipated lower Consumer Price Index would propel it higher. He posted $0.06242 as the nearest price target if the US CPI data comes out weaker than expected.
XRP Tipped to Rally Again Based on Incoming CPI Data
XRP has been underperforming compared to other top cryptocurrencies in the past few months. Historical price data shows that XRP has only gained 18.7% on its price since last year. Comparatively, Toncoin (TON), its closest rival, has gained an impressive 263% within the same timeframe.
Dixon thinks that lower CPI data will introduce enough bullish momentum to trigger a rally. The US Bureau of Labor Statistics (BLS) is scheduled to release the April CPI data today, May 15.
For context, the CPI is an important economic indicator for measuring inflation by tracking how much US consumers spend on purchasing a basket of goods and services.
This data often influences financial markets, including the price of cryptocurrencies. Whenever the CPI is higher than expected, it can lead to a downturn for risk assets like Bitcoin and other cryptos. However, a lower-than-expected CPI could boost market sentiment, triggering a market-wide rally.
Based on this theory, Dixon believes the upcoming CPI data could spark a rally for XRP, possibly pushing its price to new heights. Meanwhile, other analysts share a similar bullish sentiment on XRP. Renowned analyst Bobby A said XRP could record a massive increase if Bitcoin returns to the $72,000 price level.
The sleeping giant. ⚒️#XRP https://t.co/YepJLJ9cch
— Bobby A (@Bobby_1111888) May 12, 2024
Bobby A thinks XRP can surge 2,463.59% to hit $13. However, these predictions remain speculative as it remains uncertain whether the upcoming CPI will be lower or higher.
Disagreements on XRP’s Potential Price
Some individuals disagree with Dixon, noting that the CPI data might not be enough to boost XRP. According to an X user, Thinking Man, a $0.60 (60 cents) target for XRP is hardly awakening a sleeping giant.
Another user, Popp, noted that the US SEC has crushed XRP. Based on its use cases, Poppy believes XRP should be soaring. However, he remains hopeful of an upturn in the asset’s price.
How is XRP Faring Today?
The token trades around $0.50, with a 1% decline in the last 24 hours. XRP fell into a downtrend on May 7 as sellers dominated the market. However, it found support at the $0.49 price level, preventing further decline.
The cryptocurrency faces resistance at the $0.51 price level, where numerous traders are placing short trades. Also, XRP is declining to the lower band of the Donchian Channel (DC), confirming increased pressure from sellers.
Additionally, the RSI is 39.96, approaching the oversold region, which could lead to further selling pressure.
Given these signals, it will likely continue in its downtrend in the coming days until buyers find an entry point around the oversold region. However, if the CPI data turns out favorable, a rally back to $0.5 is possible.
Nevertheless, due to cryptocurrencies’ volatile nature, all traders must apply proper research techniques and limit their risk exposure.
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