The general crypto market is recovering from the downturn that was ignited after the August 5 crash. At the center of this resurgence is the trending cryptocurrency, XRP. Investors have been following the price trend of this coin for a while, especially since the recent court ruling in the Ripple vs SEC case.
Notable crypto experts and analysts have predicted a dramatic surge in the value of the coin which would be triggered by certain factors and analyses. In this article, we have outlined some reasons why the token might see a rally soon. See below.
Reasons to Expect an XRP Rally Soon
Potential End to the Ripple vs SEC Case: Judge Analisa Torres’ ruling required Ripple Labs to pay the U.S. SEC only $125 million in civil penalties, which is a substantial amount less than the $2 billion that the government agency had requested. Despite the injunction, Ripple’s ODL business is not significantly damaged because it conducts more of these transactions outside of the US.
The blockchain firm and the cryptocurrency community saw the court’s decision as a win. However, the optimism was dashed by the recent collapse of the crypto market, and the price of XRP dropped below $0.50. However, the price has increased by 25% since then and investors’ confidence in XRP has not wavered. Notably, the most-awaited bounce that was absent following Ripple Labs’ victory could be sparked by the most recent market recovery.
XRP Technical Analysis: Chart Forms Golden Pattern: The price chart of XRP has created a bullish pattern known as a “golden cross.” When a short-term moving average (MA) crosses over a long-term moving average, a pattern like this one is created.
The 50-MA has crossed over the 200-MA in the daily timeframe, indicating that a golden cross has formed. As a result, over the past day, the price of XRP has increased by 7%. Because of this, traders are very optimistic about the creation of the golden cross pattern.
Potential RLUSD Launch and ETF Expectations: Following the decision, Ripple Labs made additional announcements about the RLUSD stablecoin. The cryptocurrency payments company began testing Ripple USD (RLUSD), a stablecoin, on Ethereum and XRP Ledger.
Once the court provides clarity, the cryptocurrency community is quite optimistic about the debut of the XRP ETF. The odds of an XRP ETF have grown, according to the company’s CEO Brad Garlinghouse, following the introduction of an XRP index by CME and CF Benchmarks.
Consequently, the price of XRP is predicted to rise significantly as a result of these developments. Even though Wall Street heavyweights like BlackRock said they have no intentions to produce an XRP ETF at this time, businesses have begun utilizing XRP. Wells Fargo gave their approval to the usage of XRP to pay off credit card debt and make loan payments.
Additionally, the CFTC was formally notified by Bitnomial Exchange, a designated contract exchange, of its intention to launch XRP/USD futures contracts.
XRP Price Movement
Meanwhile, the price of XRP increased by nearly 7% over the past day, however, at the time of writing, the coin was trading at $0.609 indicating a 3.11% surge. XRP traded between the range of $0.576 and $0.614 in the 24-hour. In addition, there has been a 63% increase in trading volume during the past day, suggesting that traders are becoming more interested. A price analysis of XRP also projects a surge to $1.
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.