- Technical indicators support XRP’s possible 45% gain in Q4.
- A Golden cross on the daily chart suggests a long-term bullish phase.
- The recent adventage in the SEC vs Ripple case affected the XRPprice action.
- Ripple launched an NFT fund, that could further benefit the digital asset.
YEREVAN (CoinChapter.com) – XRP, the native token of the Ripple blockchain, traded at $1.17 in the early European session Monday after rising over 10% in the past three days. Moreover, the cryptocurrency might gain another 45% in the current quarter to reach multi-month highs, with several technical and fundamental indicators supporting the upside outlook.
#1 XRP prints ‘Golden Cross’
In detail, a Golden Cross appears when an asset’s short-term moving average closes above its long-term moving averages. Traders look at the said crossover as a sign of improving bullish strength. As a result, the price typically rises upon the indicator’s formation.
So it appears, XRP has been making a similar bullish cross. Recently, the cryptocurrency’s 20-day exponential moving average (EMA-20; the blue wave) closed above its 50-day exponential moving average (EMA-50; the red wave).
The 20-50 Golden Cross signals a continued bullish outlook for the Ripple token, given its previous occurrences sent prices in the upside trajectory—sometimes by hundreds of percent.
Moreover, the relative strength index (RSI; asset’s momentum indicator at the bottom of the chart) looked strong and clocked at 61. An RSI between 50 and 70 signifies the traders’ high confidence in the digital asset and willingness to invest.
#2 Lead in the SEC vs Ripple case
In retrospect, the US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs in Dec 2020, accusing the San Fransico blockchain firm of selling $1.3 billion worth of XRP as “unregistered securities”, thus violating US investment laws.
However, SEC cleared both leading cryptos Bitcoin and Ethereum in 2018 following its ex-chair William Hinman’s claim that they are not securities. Since then, the regulator has been claiming that Mr. Hinman’s speech reflected his personal opinion and not the agency’s official position.
In the recent court hearing, Judge Sarah Netburn ordered the SEC to submit a series of documents for review. The documents relate to the SEC’s meetings with law firms and contain an email chain with a third party seeking the regulator’s help analyzing its digital asset.
The mentioned documents could prove that Mr. Hinman’s speech reflected the official stance of the governmental agency, thus strengthening Ripple’s defense.
Defendants’ request is GRANTED. The SEC shall submit the two documents related to the SEC’s meetings with law firms and the email chain for in camera review, along with a submission explaining its privilege assertions for each of those documents, no later than October 15, 2021. The SEC shall file a redacted version of its submission on the public docket. Defendants’ response is due no later than October 22, 2021. SO ORDERED.— ruled the Judge.
After the news release, the XRP price spiked almost 20%. As the digital asset reflects the wins and losses in the courtroom, there is a basis to believe it will benefit from the Ripple-favoring developments in the case.
#3 Foray into NFT sector
Given the rapid growth of non-fungible token (NFT) sales, Ripple’s desire to dab into the sector is understandable. NFT sales have rocketed in 2021. Even though September saw a setback from the August statistics, it still came in as the second-highest-grossing month for NFTs. The accumulated sales totaled over $450 million.
Ripple also caught the NFT fever. On Sep 29, the company announced the launch of a $250 million fund to support NFT projects. The “Creator fund” will provide financial and technical support to developers looking to craft NFTs on the XRP ledger.
Monica Long, the general manager of the global payment platform RippleX, commented on the news, citing the new opportunities NFTs could bring.
While NFTs have opened the door for a tokenized future, actually navigating these concepts is a different ball game for many. By starting with marketplaces and creators, our fund seeks to take the guesswork out of NFT projects to unlock unexplored tokenization use cases on the XRP Ledger.said the executive.
The factors listed above lead to believe there are gains ahead for XRP in Q4. The SEC vs. Ripple lawsuit is not over yet, but each positive hearing for the company affects the XRP charts. Moreover, the NFT sales are still going strong. If developers pay more attention to the XRP ledger, the latter will have a foray into the profitable NFT sector.