YEREVAN (CoinChapter.com) – XRP price has bled along with the broader market since establishing an all-time high of nearly $2.0 in April 2021. As a result, the XRP/USD exchange rate stood at $0.47 in the European session on Oct 17. However, the 75% drop might have a silver lining, as several factors point to retaliation.
#1 Bullish Technicals on XRP charts
Yes, the crypto market will likely bleed more before printing consistent green candles on the charts. However, since the mentioned drawdown, XRP traded within a bullish setup dubbed the ‘falling wedge.’ The latter entails two converging trendlines with a negative slope that enclose the price action and drive the price incrementally lower.
However, when the token exhausts the formation, it is likely to break above the resistance. Additionally, with sufficient buying pressure, the falling wedge promises XRP a bullish move equal to the maximal distance between the trendlines; triple-digit growth with a target price of $1.7.
Admittedly, the upside move is not likely to happen before the end of 2022. But given favorable market conditions, XRP could thrive in 2023.
#2 Upcoming EVM compatibility and Ripple expansion
Ripple Labs, the company behind XRP, took the first step in a three-part process of introducing EVM compatibility to the ledger. In short, it means that developers at Ripple are looking for ways to deploy smart contracts designed for Ethereum onto the XRP ledger.
Given Ethereum’s premium position in the DeFi sphere, EVM compatibility will likely push XRP bulls to action and raise the token’s price as a consequence.
Additionally, as CoinChapter reported earlier, Ripple expanded its field of influence to new markets. The cryptocurrency payment firm formed new partnerships with firms in France and Sweden. Ripple announced it had signed deals for its “On-Demand Liquidity” (ODL) system with Paris-based regulated payments provider Lemonway and Swedish money transfer firm Xbaht.
In late August, the startup announced its expansion into the United Arab Emirates (UAE) market as well. UAE could be a fruitful region for Ripple, as it is considered the second-largest economy in the Arab Gulf. The country is also among the top remittance nations in the world. UAE recorded a whopping $6.78 billion and $42.7 billion in remittance inflows and outflows, respectively.
Also read: Russia Attacks Ukraine Using Iranian Kamikaze Drones: Details Of The Latest Kyiv Bombings.
#3 The drawing close of SEC vs. Ripple.
As CoinChapter covered in previous Ripple reviews, the company is tangled in an ongoing lawsuit filed by the US Securities and Exchange Commission (SEC) in Dec 2020. The governmental agency accused Ripple of selling XRP tokens as “unregistered securities” during the ICO and violating US investment laws.
The final ruling might take a while longer. However, Ripple is gaining points, as Judge Torres overruled the SEC’s objections and ordered the agency to turn over the Hinman Speech-related documents. Another attorney, Jeremy Hogan, agreed that the ruling was positive for Ripple.
In short, the Hinman speech refers to William Hinman, the former Director of the Corporation Finance Division at the SEC. In his June 2018 speech, Mr. Hinman voiced his position on defining digital assets and asserted that Ethereum was ‘out of suspicion’ for the agency.
The Ripple defense jumped on the opportunity to point out the SEC’s favoritism, using the speech as one of its main pillars. Judge Torres favored Ripple in the Hinman speech regard, giving XRP bulls an incentive to double down in anticipation of a final ruling.
