As a seasoned crypto investor with several years of experience under my belt, I’ve seen my fair share of market fluctuations and regulatory battles. The ongoing saga between Ripple (XRP) and the SEC has been a long-running drama that has kept many of us in the community on the edge of our seats.
Despite achieving several minor triumphs against the SEC over the past year, the value of XRP has had a hard time gaining ground, falling short of reaching the desired $1 mark. Nevertheless, optimistic investors, buoyed by bullish chart patterns and numerous forecasts, remain undeterred and continue to anticipate that the XRP price will reach a new peak.
XRP Price Flashes Golden Cross
An anonymous cryptocurrency analyst, identified as @Nico369K on the X platform (formerly Twitter), has drawn attention to a noteworthy pattern in the XRP price chart. This pattern is referred to as a “Golden Cross,” which is a particularly optimistic configuration for any digital currency’s chart.
Related Reading: Crypto Analyst Says XRP Is Still On Course To Rise To $150
In simpler terms, a Golden Cross occurs when the shorter-term moving average of a cryptocurrency or other asset surpasses its longer-term moving average on a weekly chart. This phenomenon can be observed across various timeframes, including daily and weekly. The analyst’s observation is based on this weekly chart.
The Golden Cross indicator, when it appears independently, points to a prolonged uptrend for an asset like XRP, implying a potential price surge is on the horizon. Yet, this isn’t the sole bullish signal on the chart as the Relative Strength Index (RSI) also indicates a bullish trend.
Based on the cryptocurrency analyst’s assessment, the Relative Strength Index (RSI) stands at approximately 44.31 at present. This represents a notable decrease from previous months. The RSI serves as an essential indicator that helps determine whether an asset is overbought or oversold. Specifically, higher RSI values suggest the asset is overbought and may be due for a price decline (bearish), while lower RSI values imply the asset is oversold and could experience a price increase (bullish).
Typically, an RSI of approximately 30 indicates oversold conditions for a security. Nevertheless, XRP‘s price remains above this threshold. The decreasing RSI value, however, implies that the altcoin’s price may have already dipped into oversold territory and could potentially rebound as a result.
Other Factors That Could Drive A Rally
The ongoing Ripple-SEC legal battle is a leading reason why XRP‘s price has underperformed compared to other cryptocurrencies for the past four years. This lawsuit, initiated in 2020, has continued unabated and during this period, XRP’s price has dropped below $1 and hasn’t recovered.
As a researcher studying the ongoing legal developments surrounding Ripple and XRP, I can share that the lawsuit, which has been a subject of much anticipation, is predicted to reach its conclusion this year following Judge Analisa Torres’ decision. In her ruling, she determined that programmatic sales of XRP on secondary exchanges do not fall under the definition of securities. Consequently, Ripple and the regulatory body are currently engaged in settlement negotiations to work out a mutually agreeable resolution.
Brad Garlinghouse, CEO of Ripple, expressed confidence in the upcoming resolution of the ongoing lawsuit. Once the legal proceedings are concluded, there’s optimism that the XRP token’s value will experience significant upward momentum. Some industry experts speculate that the XRP price may even reach beyond $1, with some going as far as predicting a potential price surge above $10 during this bullish trend.
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2024-07-25 01:16