Ripple’s XRP is showing signs of recovering from price suppression problems caused by regulatory uncertainties and legal battles. The recent legal development, with a judge upholding XRP’s status as no security, has injected optimism into the market, raising the potential for significant price moves.
Ripple’s partnerships with central banks and initiatives aimed at creating stablecoins pegged to national currencies, known as Central Bank Digital Currencies (CBDCs), are seen as crucial. Integrating these stablecoins into the XRP Ledger could bolster the utility and adoption of XRP as a bridging asset for cross-border transactions.
XRP price analysis
Market analyst Egrag highlighted a convincing bullish signal on XRP’s weekly chart: a golden cross formation. This pattern, occurring for the third time, has historically correlated with significant price increases. While XRP is currently struggling to stay above USD 0.50, the looming bullish cross could spark a significant price rally.
The chart illustrates that the 21 Weekly Exponential Moving Average (EMA) is about to converge above the 100 Weekly Moving Average (MA). This pattern has previously emerged in 2017 and 2021, both times prior to significant price increases. Initially, in March 2017, XRP rose from $0.00672 to $3.31 in January 2018, a remarkable gain of 49.155% in ten months.
In conclusion, the potential resurgence of XRP is driven by regulatory clarity, central bank collaborations, and the prospect of integrating CBDC-pegged stablecoins into the XRP Ledger. The bullish golden cross pattern identified by Egrag further supports the likelihood of a substantial price increase, reminiscent of previous events that led to notable price gains.