Raoul Pal, CEO of Real Vision, explains why he became an XRP holder and how to recognize the altcoin’s risk-reward ratio.
Pal said in a recent interview with Thinking Crypto that he bought a position in XRP about a year ago, with the US Securities and Exchange Commission (SEC) lawsuit against payment company Ripple being one of the main factors contributing to this.
“I bought it because a) it has use cases and is used, and b) litigation is a magic risk / reward.
It drops in price a lot, and then I look at it and think: “Wow, where is it going to go? Discount 100% from here at 0? But when the claim is settled, it multiplies tenfold. “And I found that ‘it is indisputable.’ Why don’t you agree with a 10-1 risk / reward ratio surrounded by a catalyst? ”
The SEC filed a lawsuit against Ripple last December, claiming that the San Francisco-based payment company sold XRP as an unlisted security during its launch. The regulator claims that XRP is a security to this day.
Pal said his XRP rate is fully litigated.
“It’s all about this case.
Because the price could not determine the direction – it was excluded from the listing everywhere. This does not stop until the case is resolved, because the richest and most powerful country on earth does not allow easy investment in this case. ”
What’s the XRP price now?
XRP price, like most other cryptocurrencies, showed clear signs of recovery after the flash crash ended on Saturday. A strong bounce off the lows could trigger a new uptrend for XRP.
XRP price has been holding strong support near the $ 0.83 area since Sunday. Fears of bearish pressure persist, but XRP’s bullish behavior suggests significant buying volume.
There is a hypothetical long trade opportunity on the chart and a pivot point of $ 0.05 per 3-box of XRP. Entry is a buy stop at $ 1.05, a stop loss at $ 0.85 and a profit target at $ 1.75.
An entry point based on a point-and-figure pattern is known as a bearish shake. This pattern is only valid if a trend reversal is expected. The 2-slot stop will help protect the intended winnings.
XRP $ 0.05 / 3-rectangle chart and reverse chart
When a hypothetical long entry is triggered, traders should expect some resistance in the $ 1.15 and $ 1.25 areas before a significant uptrend occurs.
The bulls should note that the ongoing lawsuit against the SEC and Ripple remains the risk factor that is the biggest unknown for XRP.