Is Selling XRP Too Soon a Mistake? Expert Draws Parallels with Nvidia's Stock Surge

This week, the XRP price witnessed a notable correction from a $0.665 to a $0.506 low on Thursday, accounting for a 23.7% low.

After facing a week-long selling pressure due to the geopolitical tension in the Middle East, the crypto market finally saw some relief on Friday. As Bitcoin held the $60,000 support, most major altcoins, including XRP, rebounded for a fresh price rally.

While XRP’s price experienced a significant correction earlier this week, dropping from a high of $0.665 to a low of $0.506 on Thursday—marking a 23.7% decline—the renowned trader, known as EGRAG, shared his optimistic perspective on XRP.

Pointing out the trader's tweet, it showcases Nvidia's stock price chart, highlighting Cathie Wood's sell-off of the asset just before a major bull run. Due to the rising demand for AI, Nvidia's shares rose substantially, making the timing of the sell-off noteworthy.

Do not be like Cathie Wood who sold her shares in Nvidia here: #XRP #Crypto pic.twitter.com/YM3C3aTmXK

— EGRAG CRYPTO (@egragcrypto) October 3, 2024

This depiction is relevant to XRP's current situation, as the altcoin's price has been consolidating for an extended period. A potential rally could lead to a major uptrend.

Moreover, Ripple seems to be eyeing a 14% surge as the XRP price continues to trade with an intraday gain of 2%. Attempting to sustain psychological support above $0.5, this level serves as a crucial accumulation for buyers.

As XRP trades within a triangle pattern on the daily timeframe, a breakout from either direction could propel the asset's price significantly. Previously, a bullish retest of the $0.5 support drove a 33% surge in September.

Hence, a bullish breakout from the $0.5 support could signal the acceleration of the bullish momentum and lead to a 14% surge to challenge the long-coming resistance of the triangle pattern.

This potential rally will also aim to reclaim the daily Exponential Moving Average (20, 50, 100, 200), providing further support for buyers.

On the contrary, if XRP breaks below $0.5 support, the selling pressure would intensify and plunge the asset to $0.45 or $0.4

Common Queries Answered

1. How does Nvidia's stock relate to XRP's price movement?

The trader's tweet draws a parallel between the price action of Nvidia's stock and XRP, suggesting that holding XRP during a potential price rally could be a wise strategy, much like holding Nvidia shares during its bull run. This perspective aligns with the belief that XRP is poised for a breakout from its long consolidation.

2. What impact could the $0.5 support level have on XRP's price?

If XRP manages to hold above the $0.5 support, it could serve as a springboard for a bullish breakout from the triangle pattern, potentially pushing the asset's price up by 14%. This would also coincide with a breakout from the daily Exponential Moving Average (20, 50, 100, 200).

3. Is Selling XRP Early a Strategic Error?

The trader's tweet suggests that selling XRP too early, before it fully recovers from the recent sell-off, could be a mistake. This perspective aligns with the trader's belief that XRP is still undervalued and has the potential for a significant price rally.

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