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Although its price of $0.382986 represents a 3% gain in the previous week and a 4% gain in the previous fortnight, the XRP price has decreased by 1.5% during the past 24 hours.
With the coin up by 12% since the year’s beginning, XRP’s latest moves allowed it to recapture a market valuation of $20 billion earlier this morning.
Its fluctuations coincide with persistent worries about banking equities and the global financial system, with an investor shift into BTC boosting the market as a whole (including XRP).
And with Ripple anticipating a resolution to its protracted legal dispute with the SEC in the coming months, XRP might experience some significant gains soon.
The chart of XRP indicates that a rally is possible, with its relative strength index (purple) going over 50 today, signaling a boost in bullish momentum.
At the same time, XRP’s 30-day moving average (red) remains much lower than its 200-day moving average (blue), and considering that its recent decline has now smoothed out, it may begin to rise again.
XRP did, in fact, test the $0.4 resistance level this morning, allowing it to reclaim a market worth of $20 billion.
While it has returned to sub-$20 billion, it is probable that it will not only return to this level in the coming hours or days, but will decisively break past it.
Curiously, whales appeared to have varied feelings about what XRP would do next, with some transferring tokens into exchanges and others moving tokens off.
For example, when a huge trader transferred $11.8 million in XRP from Upbit to Binance yesterday, another large trader sent $118.2 million to Binance.
Make of it what you will, but the longer term outlook for XRP remains good, owing primarily to predictions over what will happen in Ripple’s dispute with the SEC.
Encouragingly, Ripple has been able to win a number of positive verdicts in recent months, strengthening the crypto community’s belief that it has a high chance of succeeding.
Most significantly, one of the SEC’s primary expert witnesses was excluded last month, who had been invited by the agency to establish that XRP customers had a legitimate expectation of profit when they purchased the coin from Ripple.
Not only that, but in the last year or two, Ripple has won access to critical SEC correspondence, as well as the company’s right to deploy a fair notice defense.
Because of all of this, there is a strong assumption that Ripple will receive a favorable verdict or settlement, allowing it – and XRP – to carry on as usual.
If this is the true, XRP is expected to rise, perhaps capturing a large portion of the market.
In the case of a Ripple victory, it would not only break $0.5 and then $1, but it would easily surpass its current all-time high of $3.40, reached in January 2018.
From there, even greater gains are likely, with some XRP investors aiming for $10.
Such a price would be contingent on a clear triumph for Ripple, as well as corporate development and a return to more favorable market circumstances.
Yet, it’s not impossible, especially given that XRP has maintained a top-10 cryptocurrency during the Ripple-SEC dispute.
While now is an excellent moment to acquire XRP due to its low price, the cryptocurrency may not see a significant price gain until later in the year, once the lawsuit is resolved.
As a result, traders seeking significant short- and medium-term profits may choose to look at other potential cryptocurrencies.
