Veteran Trader To XRP Holders: The End Is Near

Tony Severino, a seasoned Bitcoin trader, has issued a new assessment of XRP, signaling that the ongoing price rally could be approaching its concluding phase. While the momentum has been strong, Severino emphasizes that traders should now prioritize risk management and establish clear exit plans.

XRP’s Current Price Action and Technical Outlook

XRP has recently attempted to break into a price discovery phase after moving out of a long-standing symmetrical triangle that had constrained its growth since 2018. The cryptocurrency reached $3.66 in July, marking a seven-year high, before experiencing a slight pullback. As of now, XRP trades at $3.11.

Severino points to technical indicators, including the Fisher Transform, which is approaching levels observed during previous major peaks in 2017 and 2021. Both past instances were followed by substantial declines, suggesting that caution is warranted even amid the rally. Based on this pattern, Severino advises setting sell-limit orders in advance to secure profits before potential price exhaustion.

Potential Peak and Historical Comparisons

Severino’s analysis draws parallels between the current movement and XRP’s late-2017 surge, when the token rose from under $0.01 to more than $3 within approximately nine weeks

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He projects that the ongoing rally could follow a similar, compressed timeframe. In his previous commentary, Severino suggested that XRP’s “final wave” might reach as high as $12.73 within roughly 40 days, indicating a possible peak between late August and early September.

Other market observers are even more optimistic, placing end-of-year targets in the $50 to $99 range. Despite these projections, Severino underscores the importance of measured trading, particularly for retail investors.

Importance of an Exit Strategy

While Severino maintains a bullish outlook, he stresses disciplined profit-taking. His personal target range for exiting trades lies between $8 and $13. He is not alone in warning of a potential reversal following a peak

EGRAG, another cryptocurrency analyst, shares this concern, projecting similar downturn scenarios once XRP reaches a peak. He has outlined two possible outcomes. One scenario sees the token reaching $27 before declining roughly 97% to $0.80, while a more moderate scenario anticipates a high of $9 followed by an 85% drop to $1.30.

EGRAG also notes that a fall below $0.30 remains within the realm of possibility based on historical cycle patterns. Although some experts, including Michael Saylor and Bitwise’s Matt Hougan, argue that institutional involvement has altered market dynamics, analysts like EGRAG contend that cyclical trends remain relevant and that price corrections are likely to occur.

While projections for XRP’s peak vary widely, analysts agree that the current rally is in an advanced stage. Historical trends suggest that significant corrections often follow sharp gains, making disciplined exit strategies essential for protecting profits

Disclaimer*: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.*