As a seasoned analyst with over a decade of experience in the cryptocurrency market, I’ve seen my fair share of price consolidations and breakouts. The current XRP situation, however, presents an interesting case due to the unique insights provided by Ripple CEO Brad Garlinghouse regarding the role of speculation in driving up XRP utility.
For around two weeks now, the value of XRP has been holding steady during the market’s recovery phase. On a larger scope, XRP is situated within a symmetrical triangle pattern, which may lead to an upward or downward break based on current market trends. The impending conclusion of the SEC vs Ripple lawsuit has created a bullish sentiment for the asset; however, its price has primarily remained stable. Interestingly, documents have emerged where the CEO of Ripple hints at potential catalysts that could significantly boost XRP’s value.
Catalysts for XRP Price According to Ripple CEO
A member of the XRP community named Anderson posted a document from the SEC versus Ripple lawsuit, highlighting how the securities regulator acknowledged the impact of speculation on boosting the usefulness of XRP.
It’s acknowledged that speculators, along with their trading activity, are crucial for initiating the momentum behind XRP, enabling it to be utilized within Ripple’s products. This is a concept even the SEC appreciates.
If XRP experiences a significant surge in its speculative value, accompanied by an increase in trading activity, then this situation…
— Anders (@X__Anderson) September 23, 2024
According to the SEC’s findings, Brad Garlinghouse, CEO of Ripple, informed members of the Ripple Board that a significant increase in the value of XRP (XRP price surge) would serve as a crucial trigger or starting point for the XRP mechanism to gain momentum.
Anderson pointed out that even the SEC recognized the significance of speculation in launching the XRP mechanism, making it hard for them to grasp why this practice was incorporated into their lawsuit.
Despite this, Anderson believes that a significant rise in the cost of XRP, coupled with increased trading activity, is necessary for XRP to realize its potential usefulness within Ripple’s offerings like On-Demand Liquidity (ODL).
Implying such a surge in XRP, at least as significant as the one seen in 2017, could boost both demand and practical use for it.
Will XRP Price Fly Higher?
The current price of Ripple is hovering over its 200-day and 50-day moving averages, indicating a positive outlook. Moreover, it appears to be confined within a triangle pattern that has persisted for about three months, hinting at a potential resolution imminently.
Triangles that are symmetrical may lead to a breakout in either upward or downward direction, often leaning towards the path of the prior price trend. Here, it seems the XRP might move higher (upward breakout).
The present resistance level for XRP‘s price is around $0.59, yet if it manages to exceed this point, there’s potential for a 37% increase, taking the price up to $0.83 – a fresh one-year peak.
The ongoing price trend indicates a potential bullish pennant formation, which could lead to an upward price breakout, increasing the likelihood of a bullish market movement.
If market circumstances shift and the price doesn’t surge beyond a certain point, XRP might slide down towards the bottom trendline of the triangle at approximately $0.55. Additionally, increased selling could potentially drive the price even lower to around $0.50, which would contradict the current optimistic forecast.
Conclusion
The price of XRP has been stuck in a pattern of holding steady for the past three months. Factors such as speculation and trading volume could potentially spark a rise in XRP’s value, setting the stage for an increase. With a projected surge of up to 37%, Ripple’s price could reach $0.83, which would be its highest point since July 2023.
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2024-09-25 14:04