Why Did This Bitcoin Bull Buy a lot of Ripple (XRP) Now?
TL;DR
- The CEO of BecauseBitcoin invested heavily in XRP, citing specific technical analysis as the reason.
- XRP’s NVT ratio has fallen to around 125, which is considered undervalued, potentially supporting the case for future price growth.
Change of Heart
The X user Max (CEO and founder of the crypto analysis platform BecauseBitcoin) recently jumped on the Ripple (XRP) bandwagon as an investor. The exec revealed purchasing “a lot of” XRP tokens based on the emergence of a specific chart.
Max promised to release a dedicated video on the matter and explain the technical analysis which led to that move.
“Never in a million years would I have thought this would be the case… but the chart never lies,” they added.
Numerous X users praised Max’s decision to enter the XRP ecosystem. MandoCT (a popular trader with almost 500,000 followers on the social media platform) said this is “an easy trade to $1.50-$1.90.”
Max was even more bullish, replying to one of the comments that he expects a spike to as high as $5 sometime next year.
Other optimistic analysts envisioning a price explosion for XRP in the future include Mikybull Crypto and EGRAG CRYPTO. The former believes the recent chart of the asset reminds the one observed in 2017 which was later followed by a massive bull run.
“Analysts refer to this chart as a technical time bomb waiting for an explosion,” the enthusiast stated.
EGRAG CRYPTO presented five different scenarios for a potential XRP price rally. The targets vary from $3 to a “mega pump” of $27.
“My Color? I’m choosing ALL of them! I’ll sell small portions at each key target. Let’s not make the same mistake as last cycle. While in the last cycle I sold a bit around $1.85, I bought back around $1 thinking we’d hit a new high (past $1.96). Lesson learned – this time, we’re READY,” the analyst said.
Escaping Overvalued Conditions
One important factor worth considering when speculating on XRP’s future market dynamics is the NVT (Network Value to Transactions) ratio.
The metric measures the relationship between market capitalization and the value of transactions conducted on the blockchain. A high ratio suggests the asset could be overvalued, potentially signaling the likelihood of a price correction.
While the NVT soared substantially toward the end of August, it has been on a downfall ever since. Currently, the ratio stands at around 125, which is generally considered an undervalued territory.
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