XRP Rally Warning: Trader Predicts Imminent Peak

XRP has been on a significant upward trend, but veteran trader Tony Severino believes XRP holders should tread carefully. As confidence grows around Ripple’s market movements, Severino warns that a top may be approaching—signaling the time to draft clear exit plans and reinforce risk management strategies.

Severino’s caution comes after XRP recently broke free from a symmetrical triangle formation that had constricted its journey since 2018. This breakout led to a notable high of $3.66 in July before the value retreated to $3.11. The move has signaled the possibility of XRP entering a new price discovery phase, but the technical indicators suggest the momentum may be short-lived.

According to Severino, the Fisher Transform indicator—a tool used to identify price momentum tops—is reaching levels that have historically preceded significant downturns. The indicator previously peaked ahead of substantial XRP corrections in both 2017 and 2021. “Ensuring sell-limit orders are in place can help secure gains before market exhaustion sets in,” Severino advises.

Reflecting on past events, Severino draws parallels with XRP’s incredible surge in late 2017, when it skyrocketed from under $0.01 to over $3 within a nine-week window. He anticipates a similar pattern could play out again, potentially peaking between late August and early September. Severino suggests that a realistic price ceiling could range from $8 to $13 if the pattern repeats itself.

While Severino emphasizes readiness and caution, other analysts hold a more optimistic outlook for XRP. Some predict even more dramatic gains, projecting levels between $50 and $99 by year-end. Despite these bullish perspectives, Severino maintains that proactive planning trumps speculation, especially for retail investors who are less agile in fast-moving markets.

Crypto analyst Jaydee supports this sentiment, warning that only a fraction of XRP holders may actually capitalize on the price surge if they fail to act swiftly. His analysis underscores the need for all investors to develop robust strategies ahead of anticipated highs rather than chasing prices once declines begin.

Additional insights from analyst EGRAG introduce two divergent paths XRP might take following its peak. In one scenario, XRP could climb to $27 before collapsing by 97% to $0.80. Another possibility forecasts a top around $9, followed by a more moderate 85% drop, reverting to $1.30. Both cases reinforce the historically volatile nature of XRP’s market cycles.

EGRAG further warns that despite optimism surrounding XRP’s institutional adoption, there remains a risk of the asset revisiting sub-$0.30 levels due to recurring cyclical behaviors. He argues that previous patterns still hold predictive power and that past cycles may repeat themselves in unpredictable yet painful ways.

While some in the market argue the decentralized finance landscape and increased institutional interest have improved XRP’s stability, both Severino and EGRAG believe caution is key. The emphasis lies in preserving capital during euphoric rallies that tend to fade just as quickly as they rise.

Related: XRP Price: $12M Max Pain for Bears

For XRP holders, the prevailing message is clear: while the asset shows great promise, complacency could lead to missed opportunities or unexpected losses. Those who actively manage entries and exits stand to benefit the most in the unpredictable journey that Ripple continues to navigate through the evolving crypto ecosystem.