XRP Gains at Risk: Why XRP Holders Must Take Profits Now

Nick Valdez, an analyst at the popular Discover Crypto channel, has urged XRP holders to take profit from the recent price pump following the lawsuit victory.

Valdez shared this sentiment in a recent analysis after Ripple achieved a 94% reduction in the fine demanded by the SEC in the long-running lawsuit.

Following the announcement of Ripple’s victory, the price of XRP surged by over 30% to reach $0.64. However, Valdez cautioned XRP enthusiasts not to get over-excited and to consider taking profits in the short term.

Why Sell XRP Now on Pump: Historical Analysis

He expressed this view after analyzing XRP’s historical price actions following pivotal events that initially boosted its price. The analyst pointed out that after similar positive news in the past, XRP’s price often retraced to previous levels, nullifying the short-term gains.

Specifically, he referenced two major events in XRP’s history: the initial SEC lawsuit announcement in December 2020, which caused a significant drop, and a previous court victory that temporarily doubled the price.

Notably, XRP traded at around $0.24 ten weeks before the SEC launched the lawsuit against Ripple in December 2020. XRP later reached a high of $0.78 in November 2020. However, XRP plummeted to as low as $0.168 by the time the lawsuit emerged before stabilizing around $0.23 days later.

Essentially, Valdez stressed that despite the initial adverse reaction to the SEC lawsuit, XRP returned to its pre-lawsuit price within a few weeks as if nothing had happened.

XRP chart before and after the SEC lawsuit

In the second event, XRP triumphed in July 2023 when the court ruled that XRP itself is not a security. XRP doubled in price within 24 hours, rising from about $0.47 to $0.93. However, about a month after this victory, XRP had fallen back to $0.47.

XRP chart before and after July victory

Based on these patterns, Valdez warned that XRP could see a similar regression in the coming weeks, particularly as the SEC may still appeal the ruling.

Where Will XRP Stabilize?

He suggested XRP’s price could stabilize between $0.40 and $0.50 by mid-September, advising holders to consider taking profits before this potential pullback. Interestingly, XRP is already losing its recent gains from the Ripple lawsuit victory, now trading at $0.5886.

Valdez concluded by stating that, while he remains long-term bullish on XRP due to its potential in the global financial system, short-term traders should be cautious. He predicted that XRP might face resistance around $0.93, making it a challenging level to surpass in this cycle.

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