2021 has been a successful year for the crypto market as a whole so far. Every asset in the top 10 shows strong activity, with the exception of XRP. While the price is still the seventh largest coin on the market cap chart, it has yet to test its April 2021 high of $ 1.96.
From a long-term perspective, every top asset has set new ATHs such as Bitcoin, ETH and ADA in the past few months. However, XRP has never returned to the ATH achieved in 2018.
This token lost its constant momentum after the lawsuit with the SEC. Structurally, the market could change significantly in the coming months.
However, it is important to note that price developments will still depend on a number of external factors. The following article outlines the bullish parameters that could trigger the XRP rally.
XRP back to top 3?
At the time of writing, XRP ranks 7th on the charts with a market cap of over $ 52 billion. BNB ranks 3rd with a valuation of nearly $ 82 billion.
To usurp BNB, XRP’s market capitalization would have to increase by around 60% and raise the price to $ 1.75. Given the structure of the market, this goal is extremely feasible.
Using the example of the 1-day chart, XRP consolidated itself strongly in the liquidity zone (marked on the chart) last month. With a prominent symmetrical triangle forming at the time of writing, a break and rebound towards immediate resistance at $ 1.4-1.5 is pretty high.
A confirmation results from the fact that the trading volume decreases with the price decrease, so that every volume spike automatically triggers a price increase.
However, XRP’s reach may no longer be limited to just $ 1.40 or $ 1.50. It is possible that the asset is considering hitting its ATH in 2018 by the end of December and continuing to climb over the next year.
On the monthly chart, XRP appears to be targeting up to $ 10 structure, given the possibility of a boom.
While it is impossible to predict such a move in detail, there may be some stories that are slowly turning in favor of XRP.
Coinbase, SEC and Warren Buffett
The SEC began putting pressure on Ripple late last year. In December 2020, they filed a lawsuit against the organization and two executives. XRP’s value collapsed during a period of active market activity. Worse still, Coinbase announced the cancellation of XRP on January 19th.
10 months have passed since the lawsuit was filed and not yet completed. In the past few months, the upper hand seems to have been in Ripple’s favor. In fact, the SEC was asked by Judge Sarah Netburn to explain in more detail why they used the Howie test on XRP rather than ETH and Bitcoin.
Jeremy Hogan, an attorney with one voice in the Ripple-SEC case, has explain:
“The SEC will be forced to admit that nothing in these contracts creates profit expectations for XRP buyers. This is a big deal for the SEC. “
At XRP and Ripple, part of the community, positive developments are slowly being made believe It’s only a matter of time before XRP is listed on Coinbase again.
While both of the above stories directly impact XRP score, Warren Buffett’s stance could be a long-term one.
Berkshire Hathaway reportedly invested $ 500 million in Brazilian bank NEO, which is a member of RippleNet and uses the platform’s ODL services.
It can be speculated that Buffett saw some intrinsic value in Ripple’s ODL remittance services. Perhaps this is the reason for such a large investment.
Regardless of how compelling the stories are, it’s important to understand that such rallies for XRP are only possible in the next few months and quarters, rather than weeks.
It’s still important to understand the dynamics before investing in an asset that has been rocking the markets and regulatory volatility for more than a year. So, as always, do your own research as this is not investment advice.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
According to AMBCrypto