Cryptocurrency trader and author Scott Melker has emphasized that after XRP’s explosive move from trading below the $1 mark, the token still has significant potential for a big move in the near future.
According to Melker, XRP’s path to becoming the “next big mover” involves more than just its recent history of rapid price action, he explained in an interview with David Lin published on May 17.
Melker highlighted that XRP’s breakout was driven by several key developments, including its effective classification as “not a security,” which removed a major regulatory overhang. This legal clarity allowed the token to gain momentum in the optimism of the post-election market.
Further boosting sentiment, XRP was included in spot exchange-traded fund (ETF) applications and the possibility of being part of the United States’ strategic digital asset stockpile, reinforcing its status as a major player in the market.
However, Melker noted that for XRP to become the next major breakout asset, it needs a fresh and compelling narrative, as some minor uncertainties, such as the final settlement of financial penalties in the Ripple and Securities Exchange Commission (SEC) case, still linger.
“I think we could say there was a lot of weight holding it [XRP] down, sort of like a balloon being pushed underwater, and when all of that was released, with all that clarity. <…> They’ll need another narrative now to be the next big mover,” he said.
New twist in Ripple case
It’s important to remember that on May 8, both Ripple and the SEC appeared close to finalizing a $50 million settlement to end their dispute, pending court approval.
However, on May 15, Judge Analisa Torres blocked the deal, stating that the motion, filed under Rule 60, required proof of “exceptional circumstances,” which were absent.
The proposed settlement sought to reduce Ripple’s financial penalty by 60%, from $125 million to $50 million, while potentially allowing the SEC to shift its approach to cryptocurrency regulation.
Despite ongoing legal uncertainty, XRP has traded mainly below the $3 mark, reflecting broader market sentiment.
Nevertheless, Ted Pillow’s technical analysis suggested a potential breakout, as XRP recently surged above a descending resistance line, establishing a critical support level around $2.4.
If this momentum holds, XRP could push toward the $2.9 to $3 range in the coming weeks, supported by a classic “cup and handle” pattern, a traditionally bullish formation. However, failure to hold this level could see XRP retest the previous support zone near $2.
XRP price analysis
By press time, XRP was trading at $2.37, down 2.6%. Over the past week, the asset has dropped 1.4%.
At the current price, XRP is trading above the 50-day and 200-day simple moving averages (SMA), suggesting a bullish short- and long-term trend.
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