XRP Faces 70% Crash or 700% Surge Amid Market Uncertainty

Ripple (XRP) is currently at a critical juncture, with a prominent analyst suggesting that it could either plummet by 70% or surge by 700%. This dual forecast comes amidst broader market uncertainty, largely driven by the ongoing trade tensions between China and the US, which have affected Bitcoin and most altcoins.

According to analyst EGRAG CRYPTO, XRP has formed an ascending broadening wedge pattern. The direction of this pattern's breakout remains uncertain. For a bullish breakout, XRP needs to close above the $3.50 price level, which could initiate a surge towards the $5 range. If XRP manages to close decisively above $5, it could trigger a rally to double digits within weeks, potentially reaching $41.70, marking a 700% surge. However, the analyst notes that there is only a 30% chance of this bullish scenario playing out.

On the other hand, there is a 70% chance that XRP could experience a bearish breakout from this pattern, leading to a 70% crash to $0.65. This mixed prediction highlights the uncertainty surrounding XRP's price movement, with no clear direction for a breakout. Potential bullish catalysts, such as a spot ETF filing by a major financial institution or regulatory recognition of XRP as part of a digital asset stockpile, could support upward momentum and push the price towards $17.

Currently, XRP is trading at $2.13 with a slight 3.3% gain in the last 24 hours. This price movement has triggered a surge in short liquidations, with data showing that XRP short liquidations have reached $7.3 million in the last 24 hours, the highest in more than two weeks. When short sellers are liquidated, their positions are closed by buying the asset, which can drive up the price. These liquidations have also caused a shift in funding rates, which have been deeply negative in the last two days, indicating that traders opened short positions as the price approached the critical support level of $2. However, the recent gains have led traders to go long on XRP, showing optimism towards a price recovery.

In summary, XRP is at a pivotal point. A spike in buying pressure and whale activity could push Ripple towards $17. However, failure to hold levels above $2 might cause a crash to $0.65. The current market conditions and the ascending broadening wedge pattern present both opportunities and risks for XRP investors.