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. He emphasizes that traders should prioritize risk management.
Current XRP 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.
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. 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.
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. Other analysts also express concerns that only a small fraction of investors are likely to capture substantial gains. Analyst EGRAG shares this concern, projecting similar downturn scenarios once XRP reaches a peak.
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.
