As bearish momentum overtakes the XRP market, analysts are weighing whether now is a good time to buy XRP.
Lark Davis, a widely followed crypto YouTuber, started the conversation on X. He first acknowledged that XRP is one of the strongest crypto assets in the market. The coin has continued to defend its position as the fourth biggest crypto despite a continued sell-off.
However, Davis noted that its technical chart looks severely damaged. Still, XRP has maintained a decent chart by trading above the 200-day EMA.
He pointed out that XRP has been dangerously close to this crucial support multiple times. He highlighted that it has made four retests of the 200-day EMA since late May, with no significant rallies happening at those times.
Meanwhile, Davis noted that this is not entirely bad, as the coin has offered traders some good trading opportunities. He mentioned that the 200-day EMA is a good point for traders to go long on XRP, calling it a decent trade.
Buy XRP Now to Sell on ETF News
However, for spot buying, especially for those looking to hold long term, he advised caution. From a personal perspective, Davis stated he would only buy a large amount of XRP now to sell it later this year on the ETF pump.
Notably, the SEC could approve more than ten spot XRP ETFs by October this year, which is the final decision deadline. The regulator has deferred its decision multiple times on the products, with all eyes now focusing on the final deadline in Q4 2025. Davis says the announcement of approval could trigger FOMO since it is widely anticipated.
“Litecoin Offers Better Risk-Reward”
Meanwhile, the analyst noted that he sees more potential in Litecoin upon ETF approval than in XRP. Interestingly, he even said that if guns were held to his head and he was given $100K to put in XRP or LTC, he would choose Litecoin.
For him, the main deciding factor is Litecoin’s relatively smaller market cap compared to XRP. Specifically, Litecoin has a market cap of around $6 billion compared to XRP’s $120 billion, which is about 20 times bigger. Based on this, Davis believes LTC is more likely to see a 4X price pump faster than XRP on ETF news.
Still, he acknowledged XRP’s ability to make massive runs when the time is right, such as the 7X pump from November to January. Even now, XRP is still preserving most of those gains, up more than 300% over the past year.
However, LTC only maintains a 9% gain during the same period. Yet, Davis maintained that Litecoin offers the best risk-reward ratio.
Analyst Targets Long Position at $1.05
Meanwhile, some other market commentators are calling for a much lower price for XRP. In a separate commentary, analyst Arthur argued, based on technical charts, that XRP is not a good buy at the moment as it holds around $2.
In his view, it would become a good buy when the price dips to $1.30. He even has much lower target prices between $1.05 and $1.10, calling that a position for a clean long.
Meanwhile, other market commentators remain bullish, believing the coin will surpass $10 this year. These proponents see the ongoing dip as mere noise.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
