XRP Price Struggles, But 22% Breakout Potential Looms Amid Ripple’s IPO Plans
Despite initial high hopes following the conclusion of Ripple’s lawsuit with the Securities and Exchange Commission (SEC), XRP price has fallen short of expectations. However, a key technical pattern suggests the possibility of a 22% breakout, offering some optimism for the cryptocurrency.
XRP Price Prediction: Ripple’s IPO Could Ignite a Rally
XRP has seen modest gains, with a 11% increase over the past week and an 8% rise in the last month. Yet, according to CoinGecko, the cryptocurrency remains down by 9% year-over-year. The recent uptick to $0.64 was driven by a short squeeze and investor enthusiasm following Ripple’s favorable outcome in its legal battle with the SEC.
In the final judgment, XRP was not classified as a security, except in cases of direct sales to institutional investors. For these transactions, Ripple was fined $125 million and cautioned against future violations of U.S. securities laws.
With this major hurdle now cleared, provided the SEC does not appeal the ruling, Ripple may proceed with its plans to go public via an initial public offering (IPO).
Investor sentiment is also buoyed by the potential approval of spot exchange-traded funds (ETFs), which could further fuel an XRP rally. The launch of Ethereum ETFs in the U.S. last July has set the stage for other altcoin-based ETFs, with XRP and Solana among the frontrunners.
Ripple’s CEO, Brad Garlinghouse, has previously stated that an XRP ETF is inevitable, a sentiment echoed by the company’s Chief Legal Officer, Stuart Alderoty. Much like Bitcoin, XRP is expected to benefit from the adoption of ETFs by traditional investors, who will be able to gain exposure to digital assets through stock exchanges. The approval of an XRP ETF could trigger the next bull market.
XRP Poised for a Bull Flag Breakout
Following last week’s rally, which peaked at $0.64, XRP price dipped below $0.60, testing support at $0.54 before recovering to trade at $0.57 as of Tuesday.
According to current XRP price predictions, the token is poised for a significant move, holding steady above crucial levels like the 50-day and 200-day Exponential Moving Averages (EMAs). Bulls must reclaim the 20-day EMA, currently at $0.5732, to validate the uptrend and set the stage for a bull flag breakout.
The bull flag pattern, resembling a flagpole after an upward trend, signals a potential continuation of the uptrend. A 22% breakout above the flag’s upper trendline could propel XRP to $0.69, presenting a bullish trading opportunity.
However, there is also the potential for consolidation between support at $0.54 and resistance at $0.60, as indicated by the Moving Average Convergence Divergence (MACD) indicator’s neutral movement. Should XRP fall below $0.54, a correction down to $0.50 could occur before the market considers another push towards the $1 mark.
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