XRP Price Soars on Ripple Victory: Should You Hold On or Take Profits? (2024)

XRP recently saw a major price increase, climbing above $0.57 and briefly reaching $0.63—an impressive 28% rise over the past three weeks from a low of $0.419. Despite this strong recovery, Nick Valdez from the Discover Crypto YouTube channel is sounding the alarm for XRP holders.

Valdez suggests that XRP investors might want to consider taking profits now, as he predicts a potential price drop in the near future. What does this mean for your investment, and should you be taking action?

Legal Victory – Not a Guaranteed Win?

Ripple, the company behind XRP, recently secured a major legal victory against the U.S. SEC, resulting in a $125 million fine rather than the $2 billion initially sought by the SEC. This fine, while substantial, is seen as a win because it is 94% lower than expected.

Due to Ripple’s legal victory, a notable spike in XRP’s price, which jumped over 30% to $0.64. While the boost was substantial, Valdez’s analysis indicates that this might be a temporary gain.

Short-Term Gain or Long-Term Trend?

Despite the large price increase, Valdez believes this boost may be temporary. The court ruled that Ripple’s sales to retail investors were not against securities laws, a decision the SEC tried to appeal unsuccessfully. However, the SEC might still challenge this ruling, which could affect XRP’s future price.

Historical Patterns: What to Expect

Valdez highlights that XRP has historically shown initial gains followed by sharp declines after major events. For example, in December 2020, the SEC lawsuit announcement caused XRP’s price to drop from $0.78 to $0.168, though it later stabilized around $0.23.

Similarly, in July 2023, XRP’s price doubled from $0.47 to $0.93 after a court ruled that XRP is not a security. However, the price fell back to about $0.47 within a month.

What’s Next for XRP?

Based on these historical patterns, Valdez predicts that XRP might experience a similar regression shortly. He estimates the price could stabilize between $0.50 and $0.60 by mid-September. Valdez advises XRP holders to consider taking profits before potential short-term declines.

While he remains optimistic about XRP’s long-term prospects due to its role in the global financial system, he warns that short-term traders might face resistance, especially around the $0.93 mark.

Currently, XRP is trading at $0.59, reflecting a rise of 1.19%, with a market cap of $33.27 billion.

This expert’s prediction is bold. Do you agree with this analysis?

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