It’s been a strong year for the collective crypto market. Any asset in the top 10 would agree with this claim, but it wouldn’t be the case with XRP. While it remains at number 7 in the rankings, its April 2021 high of $ 1,966 needs to be retested.
From a long-term perspective, every top asset has managed a new ATH in the past few months. That list includes Bitcoin, Ethereum, and Cardano. For XRP, however, the 2017 high is still standing.
After the SEC fiasco, the constant momentum wasn’t on their side. Unfortunately, the market could experience a massive structural shift in the coming months.
However, it is important to note that the direction of the XRP price is still dependent on several external factors. The following article will outline the bullish parameters that could trigger its rally.
XRP to get back in the top 3?
At press time, XRP was number 7 on the charts with a market cap of $ 52 billion. Binance Coin ranked third with a valuation of $ 82 billion.
XRP, which hits $ 82 billion on the charts, would represent an increase of about 60% to $ 1.75. Depending on the market structure, this goal could be extremely sustainable.
Take the example of the 1-day chart – XRP has consolidated a lot in the liquidity pocket (highlighted in the chart) over the last month. With a prominent symmetrical triangle forming at press time, the potential to break through and rebound from its immediate resistance of $ 1.40-1.50 is pretty high.
A confirmation can be obtained that lower trading volumes have been offset by falling prices, so that each trading volume peak would automatically trigger an increase.
However, XRP’s reach may no longer be limited to just $ 1.40 or $ 1.50. The asset could examine the possibility of hitting its 2017 ATH by the end of December and continuing its rally next year.
The monthly chart for XRP, given that it is exploding in the desired direction, appears to be structurally targeting a massive break of $ 10 on the chart.
Well, while such a move is almost unfathomable, there may be some narratives slowly moving in XRP’s favor.
Coinbase, SEC and Warren Buffett ?!
The SEC began coming under pressure on Ripple late last year and filed a lawsuit against the organization and two of its executives in December 2020. XRP’s value fell during a collective upswing and then Coinbase announced its delisting on January 19th.
It has been 10 months since the lawsuit was filed and, to date, Ripple has not been found guilty. In the last few months the momentum has shifted towards ripple. In fact, Judge Sarah Netburn directed the SEC to provide clearer explanations as to why the Howie test applies to XRP rather than Ether and Bitcoin.
Jeremy Hogan, a vocal attorney in the XRP-SEC lawsuit, stated:
“UH-OH. The SEC will be forced to admit that nothing in any of these contracts creates a profit expectation from XRP buyers. That’s a big problem for the SEC. “
Given the positive developments around XRP and Ripple, part of the community believes that it is only a matter of time before XRP is listed on Coinbase again.
Coinbase – already listing $ XRP again.
– David Gokhshtein (@davidgokhshtein) October 23, 2021
While these two narratives directly impact how XRP is valued, Warren Buffett’s point of view could be one in the long run.
Berkshire Hathaway reportedly invested $ 500 million in Brazil’s NEO bank, which is an existing RippleNet member that uses its ODL services.
It can be speculated that Buffett saw some form of intrinsic value in Ripple’s ODL remittance services. This may have led to this massive investment.
Don’t count your chickens before they hatch
Regardless of the tantalizing narratives, it’s important to understand that such price spikes (if only) for XRP could come in the next few months and quarters, not weeks.
It is still important to understand market dynamics before investing in an asset that has been juggling market and legal volatility for over a year. So, as always, do your own research as this is not investment advice.