- XRP price has increased 6% over the weekend, reversing some of the losses seen last week, once traders digested the contents of the Hinman documents.
- Crypto fund manager Thomas Kralow set a bullish target of $30 for XRP, citing the altcoin’s potential for higher market activity.
- XRP has seen 200% gain in value against Bitcoin since the SEC filed its lawsuit against Ripple at the end of 2020.
XRP price recovered over the weekend after the release of the Hinman documents led to a broad sell-off of Ripple’s token last week, as increasing uncertainty on how these papers can help the payment giant in its lawsuit against the US Securities and Exchange Commission (SEC) weighed on the asset.
The token trades at $0.4870, early on Monday, up 5.8% from Friday’s low of $0.4601, but still under the $0.53 region it moved before the release of the Hinman documents.
Speculation surrounding the release of the Hinman documents could push XRP price up to the $30 bullish target in the short term, Kralow Capital founder and manager Thomas Kralow says in an interview, few months ahead of a key ruling which is set to determine the fate of Ripple’s token.
The release of Hinman documents on June 13, a key element in the legal battle between the US Securities and Exchange Commission (SEC) and Ripple, as well as the reaction of the company’s legal team has fueled speculation among XRP holders. Moreover, some of altcoin's on-chain indicators show that XRP is undervalued at the current price, $0.4870 at the time of writing.
XRP gains 200% in value against Bitcoin
XRP price has declined significantly from its June 13 peak of $0.5661. The altcoin wiped out its gains as holders digested the contents of Hinman documents release. XRP holders are awaiting a ruling in the SEC vs. Ripple case and the outcome could make or break the altcoin’s price trend.
However, XRP has gained 200% in value against Bitcoin since the SEC filed its lawsuit against Ripple at the end of 2020. This development fuels a bullish thesis for XRP price recovery and hints at likely bullish trend reversal in the asset in the short term.
XRP/BTC price chart
From a technical perspective, the next key support is at $0.4518, a level that represents its 200-day Exponential Moving Average (EMA).
The altcoin’s price has sustained above the $0.4500 level for over a month. If recent history repeats, XRP is likely to experience a rebound and recover from support at $0.4518.
Crypto fund manager sets $30 target for XRP price
XRP price is largely influenced by the SEC lawsuit against payment giant Ripple. The XRP holder community therefore closely watches the updates to determine the direction in which the altcoin is headed.
In response to the release of the Hinman documents, the contents of which are key to Ripple’s defense against the SEC, XRP price rallied to $0.5649 on Tuesday. However, XRP price has settled below $0.4853 since then, wiping out its weekly gains.
Find out more about Hinman documents here.
The three main factors fueling speculative narratives for XRP are: contents of the Hinman documents – internal messages and email exchanges among executives of the agency –, SEC former Director William Hinman’s comments on Ethereum in his 2018 speech and the regulator’s stance on XRP as a security.
Thomas Kralow, crypto hedge fund manager at Kralow Capital, said to FXStreet that these factors could fuel further speculation, driving XRP price higher within the next three to four months.
Kralow weighed in on the rising interest among crypto market participants. Based on data from Google trends, searches for XRP have doubled in the last month, signaling an increase in interest among traders worldwide.
Krakow told FXStreet:
Currently, we observe huge speculative narratives around Ripple, which could potentially lead to a significant price increase for XRP in the next three to four months, pushing its value to anywhere between $10 and $30.
Over the past thirty days, XRP price climbed 15.32%, from $0.4190 to $0.4832 on Binance. Data from Google trends reveals further potential for market activity, Kralow says, setting a bullish target of $30 per token within the next three to four months.
The manager and founder of Kralow Capital identified two factors that could make or break XRP’s rally within the next three months.
Ripple’s IPO: Ripple and its executives have shared their desire to take the payment remittance firm public from time to time during the lawsuit. Ripple’s IPO could act as a key milestone and a bullish catalyst for XRP price given the token is native to the giant’s XRPLedger.
Ripple’s win against the SEC: Ripple’s win against the SEC, or a settlement between the two parties, drawing the conclusion that XRP isn’t a security could propel the altcoin to a new all-time high.
According to crypto influencers and Ripple proponents closely following the lawsuit, a ruling is expected before September 30 this year. XRP holders could expect an increase in demand closer to the ruling.
Kralow set a minimum of $10 and a cap of $30 as price targets for XRP ahead of the ruling.
On-chain metric signals XRP is undervalued
The Market Value to Realized Value (MVRV) ratio is an on-chain metric that shows the ratio between the current price and the average price of a certain asset. The higher the MVRV ratio, the more profitable it is to sell the token at the current market price, giving an idea of how overvalued or undervalued an asset is.
MVRV chart for XRP
With an MVRV ratio of -2.8% on Monday, XRP is undervalued at a price of $0.4870, implying there is bullish potential in XRP.
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