Standard Chartered Predicts End of Bitcoin Sell-Off, Analyst Shares Why an XRP Rally is Very Likely

After enduring a bloodbath this week, Standard Chartered’s Geoffrey Kendrick says the sell-off is likely over. According to Kendrick, Bitcoin could begin to rally before the year ends, with several on-chain metrics supporting the prediction. 

Similarly, EGRAG has explained that XRP is currently sitting at a crossroads within a symmetrical triangle. While the price of XRP could fall to $1.02, the analyst is optimistic that the crypto has a better chance to rally to $5.5, which will be a new all-time high.

The Bitcoin Sell-Off is Over, Standard Chartered 

This week, Bitcoin experienced a huge decline that caused a tumble below the $90k support for the first time since July. While the Bitcoin price has recovered above $90,000, the sell-off has wiped out the gains BTC accumulated through the first ten months of the year. 

Although Bitcoin now sits at around -28.2% from its October all-time high, Geoffrey Kendrick, the head of digital asset research at Standard Chartered, has argued that BTC’s steep sell-off might have finally run its course. According to Kendrick, the pullback follows a familiar pattern, and the sell-off is likely nearing exhaustion.

In a Tuesday note to Investors, Kendrick highlighted key sentiment and valuation metrics that have now reset to levels that are historically seen when BTC bottoms. He highlighted Strategy’s (MSTR) modified net asset value (mNAV) — an indicator that gauges the firm’s BTC holdings relative to its share price. The Bitcoin mNAV indicator has dropped to parity at 1.0.

He adds that several other metrics have plunged to absolute zero levels, suggesting seller exhaustion and capitulation. DeFiWimar confirms the sentiment, reporting Bitcoin purchases, including a $1 billion purchase from a smart money investor. According to Kendrick, this is enough to signify the sell-off is over and a rally into year-end is the base case.

XRP Sits At Crossroads, But Rally To New ATH is Very Likely

Like other cryptocurrencies, the price of XRP is down by 11% on the 1W timeframe. As a result of the decline, the XRP price has retested $2.1, a critical level for the short-term price action of the altcoin. 

As the recovery effort activates, EGRAG recently examined the chances of XRP breaking out of a continuous symmetrical triangle. To provide a context, XRP began trading in this symmetrical triangle following its breakdown after hitting the high of $3.66 in July. 

It has since recorded a series of low highs, and the downward trendline of the triangle was formed. However, with the negative push, EGRAG maintained that the bullish odds seem to be rising. Although the XRP price might fall to $1.02, XRP is expected to increase above the top trendline. 

He said that the 3-day RSI of XRP has dropped into an oversold zone, which has sent a very strong signal. Moreover, XRP has the present symmetry that justifies the price upsurge. An uptrend above the upper trendline at the price level, $2.65, will likely confirm EGRAG’s prediction. 

The initial significant resistance that XRP will encounter is approximately at the price of $2.79 – the 50% Fibonacci retracement. If XRP clears this level, it does not have any major resistance until the $5.5 level, which will be a new ATH.

Key Takeaway

After several huge sell-offs in November, the bullish sentiment in the crypto market appears to be waning. With this, analysts expect cryptos like Bitcoin and XRP to resume their uptrends, which could lead to the formation of new ATHs.