XRP, the native token of Ripple Labs, has failed to meet lofty price predictions following the highly anticipated resolution of the lawsuit with the Securities and Exchange Commission (SEC). While the victory provided a temporary boost, XRP currently sits 9% down year-to-date. However, technical indicators suggest a potential 22% breakout on the horizon, fueled by renewed optimism for the altcoin.
XRP Price Stumbles After Short Squeeze Rally
XRP surged 11% last week, reaching $0.64, likely due to a short squeeze and investors’ initial euphoria over the SEC ruling. The final verdict clarified that XRP is not a security, except for a specific set of sales to institutional investors. This removes a significant legal hurdle for Ripple, paving the way for its long-held ambition of going public through an Initial Public Offering (IPO).
IPO Hopes and ETF Dreams Drive Investor Optimism
The potential IPO combined with the possibility of XRP-based exchange-traded funds (ETFs) is fueling investor optimism. The successful launch of Ethereum ETFs in the US has opened doors for similar vehicles targeting altcoins like XRP and Solana. Ripple executives have consistently expressed confidence in the eventual approval of an XRP ETF, which could attract traditional investors seeking exposure to digital assets.
Bull Flag Pattern Hints at Price Breakout
Despite the recent pullback, XRP’s technical analysis reveals a potentially bullish scenario. The token currently trades above key support levels like the 50-day and 200-day EMAs. A critical next step for bulls is reclaiming the 20-day EMA at $0.5732. This would validate the uptrend and potentially trigger a breakout from a bullish flag pattern. A successful breakout could see XRP climb 22% to reach $0.69, presenting a lucrative opportunity for traders.
Also Read: XRP Soars 2.43% As Bitnomial Exchange Ignites Futures Trading
Alternatively, coin could enter a period of consolidation between $0.54 support and $0.6 resistance. This sideways movement is supported by the neutral reading on the MACD indicator. A breach below $0.54 could trigger a correction down to $0.5 before a potential resurgence towards the $1 mark.
The XRP price prediction landscape remains fluid, with both bullish and bearish possibilities on the table. Investors should closely monitor technical indicators and developments surrounding the IPO and ETF prospects for XRP.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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