XRP price likely to rally to new all-time high of $9 says analyst
- XRP price is recovering from its decline post-SEC crackdown in June, while holders await verdict in SEC vs. Ripple lawsuit.
- A crypto analyst has identified the formation of a bullish pattern in the XRP chart that could trigger a massive price rally in the altcoin.
- The analyst has set a bullish target of $9 in the event that XRP price follows the historical trend.
XRP price suffered a steep decline in response to the Securities and Exchange Commission's (SEC) lawsuit against Ripple in 2020 and took another hit after the financial regulator’s crackdown on cryptocurrencies in June 2023.
The altcoin’s price plummeted 10.42% in the week following the SEC’s crackdown in June. Since then, XRP price recovered to the $0.4791 level.
Also read: Pro-XRP lawyer slams Coinbase for delisting XRP, comments on SEC lawsuit against the exchange
Analyst identifies bullish pattern in XRP price chart
Pseudonymous crypto analyst CoinsKid evaluated the XRP price chart. The analyst identified the indicators that precede a rally in the altcoin. Analyzing the monthly price chart, CoinsKid observed that a crossover between a 10 and 20 Exponential Moving Average (EMA) is usually followed by a price rally in the asset.
In 2017, XRP’s 10 and 20-month EMAs crossed, a so-called golden cross, marking the start of a price rally in the altcoin. The analyst noted a 720% increase in XRP price. If history repeats itself, another golden cross could trigger a massive rally, with a target of $9 for the altcoin.
CoinsKid technical analysis for XRP
As seen in the chart above, the altcoin is at the cusp of another golden cross. A golden cross could trigger a rally in the altcoin, likely driving XRP to its next all-time high.
In a recent YouTube video, the pseudonymous analyst shared his prediction for XRP price.
SEC vs. Ripple lawsuit update
Pro-XRP attorney John Deaton says that the SEC has engaged in unconstitutional expansion of the Howey test. Deaton argues that the SEC’s move is a violation of the law. The amicus in the SEC vs. Ripple has supported Coinbase Chief Legal Officer Paul Grewal for his statements criticizing the SEC’s stance. In his recent tweet, Grewal slammed the SEC for its interpretation of investment contracts.
I’ve read, re-reread, and re-re-read the Major Questions Doctrine holding in Nebraska at p. 19-26. Swap out “Secretary” for “Chair,” “digital asset” for “student loans,” and there is no conclusion but one: the SEC’s interpretation of “investment contract” violates the law. 1/3
— paulgrewal.eth (@iampaulgrewal) July 4, 2023
Deaton engaged in fact finding to support Grewal’s statements condoning the agency’s approach.
Is @iampaulgrewal engaging in hyperbole by claiming the SEC is violating the law?
— John E Deaton (@JohnEDeaton1) July 4, 2023
LET’S REVIEW A FEW FACTS:
1) up until 2018, the SEC had no policy whatsoever regarding SEC staff owning Crypto because these digital assets were a new asset class and the SEC was unsure about it; https://t.co/9UU4jzuoZl
SEC vs Ripple lawsuit FAQs
Why are the US Securities and Exchange Commission and Ripple litigating?
The United States Securities and Exchange Commission (SEC) brought charges against Ripple and its executives alleging that the cross-border payment settlement firm raised more than $1.3 billion through an unregistered asset offering of the XRP token. Ripple argues that XRP should not be treated as a security or an investment contract, just like the SEC looks at Bitcoin or Ethereum, citing views from former SEC Director of Corporation Finance William Hinman.
When did the SEC vs. Ripple court case start?
The SEC charges were made public in December 2020. The long-running litigation, presided by Judge Analisa Torres, seems to be close to its end as both parties fail to reach an agreement.
What are the effects on XRP price?
Ripple is the largest holder of the altcoin XRP. The SEC’s charges against Ripple resulted in a mass delisting of XRP across crypto exchange platforms and a sharp decline in the token’s value, which used to be the third crypto asset by market capitalization after Bitcoin and Ethereum. A positive outcome for Ripple in its case against the SEC would benefit XRP’s price, while a SEC win is likely to weigh further on the asset, experts say.
Which implications could the ruling have on the overall crypto industry?
The final verdict in the SEC vs. Ripple lawsuit is the most highly anticipated in the crypto ecosystem. The lawsuit is expected to set precedent for other open cases that affect dozens of digital assets. A ruling in favor of the SEC would most likely bring further regulation to the sector as it would classify most tokens as securities. On the contrary, Ripple’s win would be interpreted as a validation of the crypto markets and could boost investors' confidence if current legal uncertainties surrounding digital assets in the US are solved.
What about secondary sales of XRP among traders?
The ruling may also include views over XRP secondary sales, which directly affects investors who trade XRP on cryptocurrency exchange platforms. Pro-Ripple attorney John Deaton, who filed an amicus brief in the SEC vs. Ripple case, suggests this matter is likely to be addressed. A ruling stating that secondary sales don't qualify as securities, contrary to what the SEC claims, is likely to be beneficial for XRP.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
