- XRP price has formed a double-top pattern on the daily chart.
- In price action analysis, this is usually a bearish signal.
- A hedge fund manager believes that Ripple price could jump to $10.
Ripple price remained under intense pressure on Wednesday even as global stocks continued their remarkable comeback. The XRP price was trading at $0.50, a few points below the year-to-date high of $0.5863.
Why XRP price could surge
Ripple, like other cryptocurrencies, have come under pressure in the past few days after the SEC launched a major lawsuit against Binance and Coinbase. The SEC made several allegations such as accusing the two companies of offering unregulated products.
It is unclear how the two lawsuits will end. However, history suggests that the litigation will likely take several years to conclude. For example, the SEC vs Ripple lawsuit has gone on for almost three years now. Therefore, unless the two companies settle, we could see them take a few years to conclude.
The most recent Ripple news was that the court released documents from William Hinman, the then Director of Corporate Finance at the SEC. The documents showed that the SEC was not sure that Ether was a security in 2018. Analysts believe that these documents could help vindicate Ripple Labs and its executives.
Read more: How to buy Ripple with a credit card.
In a statement to BanklessTimes, Thomas Kralow argued that XRP price could jump to a whopping $10 in the next three months. He identified two main catalysts for this. First, he argued that Ripple Labs could launch its IPO soon in a deal that could value it at over $500 million.
Second, he believes that Ripple Labs will prevail in its fight against the SEC. He said:
“There is speculation in the media about the possibility of a positive outcome for Ripple in the case. The final decision on this lawsuit is expected before September 30th this year, which means there are still around three to four months left for the case to be resolved. This anticipation has fueled speculative buying, and some believe that XRP could rise anywhere from $2 to $10 if things go in Ripple's favor.”
XRP price prediction
The daily chart shows that the XRP price has moved sideways in the past few days. It has struggled moving above the key resistance point at $0.5624, which is the upper side of the double-top pattern. In price action analysis, this pattern is usually a bearish sign. Its neckline is at $0.4075.
On a positive side, the Ripple price is above the 50-day and 100-day exponential moving averages (EMA). Therefore, a move below the two moving averages will push it to the next support at $0.4075, the neckline of the double-top pattern.
On the flip side, a move above the double-top pattern at $0.5624 will signal that bulls have prevailed, which will see it rise to$0.60.
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