The price of XRP, the native token of the XRP Ledger, has shown tentative signs of life in recent days, surpassing the $0.50 psychological barrier to now trade at $0.547 per token. This stability comes after a prolonged period of consolidation, and one analyst believes its price could explode by 150%.
In a newly published post on the microblogging platform X (formerly known as Twitter), analyst Egrag Crypto revealed he believes XRP might be on the verge of a significant move, pointing to a “double bottom” formation in XRP’s chart, a technical indicator often seen as a bullish signal.
This pattern, along with other technical factors, suggests a potential setup for a notable price increase, according to the analyst, that could see the native token of the XRP Ledger surge to $1.4, which would represent a rise of 150% from current levels.
In his post, Egrag Crypto wrote that the double bottom formation is “giving us a strong bullish signal,” and added he is “highly confident that the thurst will soon begin.”
A breakout for XRP could reignite investor interest, which has waned as the broader cryptocurrency market has seen a downturn it now appears to be recovering from. Recent developments in the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) may also be contributing to the token’s tentative momentum.
The SEC is seeking a $2 billion penalty against Ripple over XRP sales, alleging the token is an unregistered security. Ripple has vehemently disputed these claims, arguing that XRP is a utility token and not a security, with Ripple’s CLO arguing the $2 billion fine demand is evidence of “intimidation against all of crypto in the U.S.”
The company recently filed a response to the SEC’s request for penalties, urging the court to impose a significantly lower fine and highlighting changes made to XRP sales to prevent future violations.
As CryptoGlobe reported, a popular cryptocurrency analyst has recently stood by their bullish price prediction for XRP, predicting the cryptocurrency’s price will explode to over $200 per token, an over 30,000% rise from its current level.
Per his words, XRP has seen a “full logarithmic follow through” which means XRP “may be more than poised for $200+.” He noted that XRP’s price surged over 100,000% during the 2017-2018 bull run, and suggested that a 33,000% run from its current level “can be more than possible and developing.”
As reported the XRP Ledger has been progressing over time, with the total amount of XRP locked onto the XRP Ledger’s recently launched automated market maker (AMM) platform recently surging from around 330,000 XRP tokens to over 715,000 XRP, worth over $400,000, at a time in which the AMM platform is set to get key bug fix.
The rise in locked XRP also comes shortly after Ripple, a leading provider of enterprise blockchain and crypto solutions, announced its plans to launch a stablecoin pegged 1:1 to the US dollar (USD). The stablecoin would be fully backed by a reserve of US dollar deposits, short-term US government treasuries, and other cash equivalents.
As CryptoGlobe reported, the firm expects the stablecoin market to exceed $2.8 trillion by 2028, and its own stablecoin will be launched both on the XRP Ledger and on Ethereum.
Featured image via Unsplash.
