Why Did This Bitcoin Bull Buy A Lot Of Ripple (XRP) Now?

TL;DR

WhyBitcoin CEO invested heavily in XRP, citing specific technical analysis as the reason. XRP’s NVT ratio has fallen to around 125, which is considered undervalued, which could support future price growth. change of heart

User X Max (CEO and founder of crypto analytics platform WhyBitcoin) recently jumped on the Ripple (XRP) bandwagon as an investor. The executive revealed the purchase of “many” XRP tokens based on the appearance of a specific chart.

Max promised to post a video dedicated to the topic and explain the technical analysis that led to this move.

“Never in a million years would I have thought that would be the case…but the graph 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 at $1.50-1.90”.

Max was even more bullish, replying to one of the comments that he expected an increase of up to $5 next year.

Other bullish analysts predicting a price explosion for XRP in the future include Mikybull Crypto and EGRAG CRYPTO. The former believes that the asset’s recent chart is reminiscent of that seen in 2017, which was then followed by a massive bull run.

“Analysts refer to this chart as a technical time bomb waiting to explode,” declared the enthusiast.

EGRAG CRYPTO presented five different scenarios for a possible XRP price rally. Targets range from $3 to a “mega bomb” of $27.

“My color? I choose them ALL! I will sell small portions to each key target. Let’s not make the same mistake as the last cycle. While in the last cycle I sold a little around $1.85, I bought back around $1 thinking we had reached a new high (above $1.96). Lesson learned: This time, we are PREPARED,” the analyst said.

Escape from overrated conditions

An important factor worth considering when speculating on the future dynamics of the XRP market is the Network Value to Transactions (NVT) ratio.

The metric measures the relationship between market capitalization and the value of transactions made on the blockchain. A high ratio suggests that the asset may be overvalued, which could indicate the likelihood of a price correction.

Although the NVT shot up substantially towards the end of August, it has fallen since then. Currently, the ratio is around 125, which is generally considered an undervalued territory.

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