XRP drops 5% on high volume, but analysts aim for 120% gain
- XRP trading resumes on Rakuten's exchange on September 8.
- SEC to deny motion to reveal employees' XRP holdings, stating that it is irrelevant to the case.
- Analysts have predicted a massive surge in volatility and expect the altcoin to hit $3 in ongoing rally.
Despite dropping about 5% on September 7, XRP is rallying in the second leg of bull run led by Ethereum-killer projects, and analysts expect the altcoin to post over 120% gains in the current cycle.
XRP rally to $3 becomes more likely as altcoin posts 80% monthly gains
The ongoing SEC-Ripple lawsuit has influenced XRP price since December 2020. The community of XRP holders "XRP Army" is leading the way, sharing updates on every move made by the Securities Exchange Commission and Ripple executives. Ripple had filed a motion asking the SEC to reveal employees' crypto holdings, but the SEC has moved to deny disclosing this information.
The grounds for denial are that employees' cryptocurrency holdings are "irrelevant" to the SEC case against Ripple. Further, the SEC won a plea to access Ripple's Slack communications, which is likely to cost the global payments giant nearly $1 million in the discovery process.
Ripple is the largest holder of XRP. Therefore, the SEC moves against Ripple have had a direct and negative impact on XRP price for over eight months now. However, the tide has turned for XRP, as analysts have noted that the cryptocurrency has started gaining momentum.
Over the weekend the broader cryptocurrency market, including XRP, surged in market capitalization, confirming the uptrend that started in August 2021. XRP has posted nearly 20% gains over the past week and over 80% in the past month.
Several positive developments have triggered the altcoin's rally. Japanese e-commerce giant Rakuten’s exchange is set to relaunch XRP trading on its platform starting September 8. Meanwhile, the XRP army has kept traders and investors informed of SEC's decisions and motions, leading an army of proponents ensuring that the altcoin features consistently in mainstream media.
Michaël Van de Poppe, cryptocurrency analyst and YouTuber, shared his bullish prediction for the altcoin in his latest strategy session,
We do know we're creating higher lows, but you actually want to break this high (0.000038 BTC) and create a new higher high through which targeting a level 0.00006 BTC ($3.00) is pretty likely to be taking place.
FXStreet analysts predict a rally to $1.80 if the altcoin holds above the $1 level.
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.
