147

XRP gains 10% in a week as short-term technicals point at potential price bottom

XRP gains 10% in a week as short-term technicals point at potential price bottom
Justinas
Baltrusaitis
3 weeks ago
3 mins read

XRP has recorded short-term gains in recent days alongside the general cryptocurrency market, at a point investors are looking for signs of a bottom. The asset is also attempting to put behind the three weeks of sustained weak price action. 

In particular, XRP, Ripple’s native token, was trading at $0.35 by press time, recording gains of almost 10% in the last seven days. During the period, the XRP price peaked at $0.36 on September 10. Amid the rally, the main focus is whether the asset will sustain the gains. 

XRP 7-day price chart. Source: CoinMarketCap

At the same time, the uptick in XRP’s value has emerged from sustained buying pressure over the seven days. Notably, as of September 11, the token had a market cap of $17.73 billion, a growth of 8.5% from the $16.34 billion recorded on September 4. 

XRP 7-day market cap. Source: CoinMarketCap

Ripple’s technicals point to a bottom 

Overall, XRP is showing signs of strength, with the asset’s gauges on TradingView pointing to a possible bottom based on both moving averages and summary. In this case, the summary shows neutrality, while the moving average indicates a ‘buy‘ for the token. 

XRP technical analysis. Source: TradingView

Currently, the price of XRP is expressing bullish sentiments aligning with a projection of a CoinMarketCap crypto community. As reported by Finbold, the community projects that XRP will trade at an average value of $0.49 by the end of September, representing a growth of about 40% from the current price. 

Besides the general cryptocurrency sector price movement, the prospects of XRP have significantly been tied to the ongoing lawsuit between Ripple and the Securities Exchange Commission (SEC). Analysts believe that the case has dragged on for a long time. 

Ripple’s lawsuit with SEC conclusion 

In the case, the SEC is accusing Ripple and its executives of raising over $1.3 billion through an unregistered securities offering. After running for almost two years, the United States-based legal counsel and XRP proponent Jeremy Hogan believe a settlement is about to be made, noting that both parties have laid down their case. 

In a tweet on September 5, Hogan stated that the settlement would likely occur by latest November this year.

If the lawsuit is settled in favor of Ripple, XRP will likely spike in value. At the same time, if the court rules XRP is a security, the price might be impacted, possibly to the downside. However, the ruling will potentially alleviate the ambiguity in regulations, especially in classifying crypto assets as securities. 

It is also worth noting that amid the legal troubles facing Ripple, the number of new accounts created on the XRP Ledger appears to be slowing down. This has emerged despite Ripple’s ongoing inroads to market the XRP Ledger to different players globally. 

XRP Ledger metrics – Number of new accounts activated. Source: xrpscan.com

Although the lawsuit outcome will subject Ripple to either positive or negative reinforcements, the value of XRP is bound to potentially benefit from the company’s ongoing partnerships to facilitate cross-border payments.

The company continues to record partnerships, the latest being with Travelex Bank, launching its cryptocurrency on-demand liquidity (ODL) service in Brazil. 

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Latest News

Join us on Twitter or Telegram

Or follow us on Flipboard Flipboard

Like the article? Vote up or share on your social media

Recommended content

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s

Justinas Baltrusaitis
Author

Justin crafts insightful data-driven stories on finance, banking, and digital assets. His reports were cited by many influential outlets globally like Forbes, Financial Times, CNBC, Bloomberg, Business Insider, Nasdaq.com, Investing.com, Reuters, among others.

AD