Top Trader Says Not Interested in XRP at These Levels, Sets Entry Triggers

Sjuul Follings, the CEO of AltCryptoTalk and a well-known crypto trader, has noted a cautious approach to XRP, emphasizing specific entry triggers that he’s keeping an eye on.

Amid XRP’s recent swings and lows, Follings’ analysis suggests he would not be trading the asset at the current price levels. The analyst disclosed the latest insights in response to a request on X.

At the time of Follings’ analysis, XRP was valued at $0.48, notably above what he calls the “demand zone.” Follings placed the demand zone within the $0.30 and $0.40 range. 

Notably, the decision not to trade XRP at the prevailing price of $0.48 results from a potential downward trajectory. Per data from an accompanying chart, the analyst believes XRP could drop to the demand zone ($0.30 to $0.40).

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Key XRP Entry Triggers

In his analysis, Follings introduced three key entry triggers. The first trigger, “TAP into Demand,” resides at the midpoint of the demand zone. This entry point will materialize if XRP descends to this crucial range amid the expected drop to the demand zone.

The chart analysis envisions two possible scenarios for XRP following its descent into the demand zone. The first scenario entails a recovery that could propel XRP above this zone, while the second implies a deeper plunge, potentially taking the token below the $0.30 mark.

The second entry trigger, “New HIGHER HIGH,” comes into play if XRP manages to recover from the demand zone and establishes a new higher high. This could signify a trend reversal and present an opportunity for traders.

The third and final entry trigger, “Entry on retest,” becomes relevant if XRP drops from the higher high and retests the upper boundary of the demand zone. Follings sees this retest as a potential trigger for long positions, anticipating a substantial surge in XRP’s value. 

According to his chart, this surge could take XRP towards the $0.70 price region. The last time XRP saw this region was in early August amid the persistent decline from the $0.9380 high observed in July. 

Impact from SEC vs. Ripple

Follings remains cautious despite the anticipated surge, emphasizing that developments surrounding the ongoing SEC vs. Ripple legal battle could change the trajectory of XRP’s price movements. 

Recall that the U.S. SEC recently noted that its decision to appeal Ripple’s partial victory was due to an intent to address “knotty legal problems.” The agency still awaits approval of its motion to request permission for an interlocutory appeal.

Ripple has also filed a motion opposing the agency’s request for an interlocutory appeal. Follings believes the outcome of the tussle could have an impact on XRP’s price. XRP is changing hands at $0.4803 as of press time.