XRP price surged to fresh highs of $1.42 during Saturday trading session. XRP had earlier surprised many with its two-day rally which eventually culminated into highs of $1.14 on April 6. With the recent price action, XRP has now recouped all losses after its massive declines to $0.168 in late December 2020, having reached the highest level since March 2018.
There may be more to the Ripple (XRP) price surge amid regulatory concerns. In December 2020, the U.S. Securities and Exchange Commission (SEC) filed a case against Ripple Inc., which uses XRP in its payments network, for raising $1.3 billion by selling the token in unregistered securities offerings.
What caused XRP Price to surge? Some attributed the upward climb in XRP price action to the immense support it’s receiving from a strong and loyal community, tagged the XRP Army. The recent clamor by this group to pressure crypto exchanges which halted trading for XRP or delisted the token after the SEC Lawsuit got the hashtag “RelistXRP” trending on Twitter in late March.
The recent progress made so far in the Ripple lawsuit also contributed to the surge in XRP price. XRP holders have been allowed to file a motion on their behalf to intervene in the SEC’s ongoing lawsuit while Ripple has been granted access to the US SEC documents “expressing the agency’s interpretation or views” on the subject of crypto assets.
José Maria Macedo of Delphi Digital however believes that XRP price upswing comes alongside a broader surge in prices of other old-timer Altcoins and a decrease in Bitcoin’s market dominance.
Sheraz Ahmed, managing partner at Storm Partners attributed two reasons to XRP’s upward momentum, first, Ripple’s newly announced 40% stake in Asia’s leading cross-border payment processor, Tranglo which will surely increase Ripple’s exposure to the Asian market. Ripple had earlier stated that its expansion in Asia was unaffected by the SEC lawsuit. Second, a potentially looming ease in regulations should Ripple reach a consensus with the incoming Gary Gensler-led SEC administration. XRP was trading at $1.30 as at press time.
Where Is XRP Heading? Analysts Have This To Say
Regarding where XRP price might be heading in the near term, Thomas Ménard, development director at Diabolo.io stated that XRP might catch up with the rest of the market if Altcoins continue in their momentum. He believes that XRP could climb to several dollars per unit in the days ahead.
Veteran analyst, Peter Brandt believes XRP may have just started its upward climb and new all-time highs may be expected in the coming months. He noted a favorable technical structure on XRP’s weekly price which he described as a “possible inverted head and shoulders with a stunted right shoulder”. An inverse head and shoulders pattern, upon completion, signals a bull market.
Katie Stockton, a technical analyst at Fairlead Strategies, confirmed the price structure on the weekly chart but rather believes it’s more of a rounded base rather than ”textbook inverted head-and-shoulders formation”.
Stockton concluded “The takeaway is similarly bullish given the breakout above long-term resistance,” while adding that XRP has already achieved the upside price targets.
XRP attained all-time highs of $3.84 on Jan 4, 2018.
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