XRP price has been consolidating for almost two weeks as the market recovers. On a macro scale, XRP is in a symmetrical triangle that could resolve on either side, depending on the prevailing market conditions. The potential ending of the SEC vs Ripple lawsuit has set a bullish precedence for the asset, although the price remains mostly stagnated. However, a document has surfaced in which the Ripple CEO reveals catalysts that could pump the price of XRP.
Catalysts for XRP Price According to Ripple CEO
XRP community figure Anderson shared a document from the SEC v. Ripple lawsuit, showing that the regulator recognized the role of speculation in driving up XRP utility.
Even the SEC understands the important role of SPECULATORS and speculative volume in starting up the #XRP flywheel, so that XRP can be used in Ripple’s products.
So, if there will be a big speculative rise in the price of XRP, along with a natural rise in trading volume, this… pic.twitter.com/rsLL6tuQX5
— Anders 🏁🌏 (@X__Anderson) September 23, 2024
From the document, the SEC points out that Ripple CEO Brad Garlinghouse told members of the Ripple Board that a “dramatic spike in XRP price” was a necessary “catalyst to the XRP flywheel.”
Anderson noted that even the SEC understood the importance of speculation in starting up the XRP flywheel, and, hence, couldn’t comprehend why the regulator included it in the lawsuit.
Nevertheless, Anderson thinks there should be a big increase in the price of XRP accompanied by trading volume for the XRP to gain utility in Ripple’s products, such as On-Demand Liquidity (ODL).
The implication is a spike in XRP, similar to or bigger than what occurred in 2017, to drive up demand and utility.
Will XRP Price Fly Higher?
Ripple price is trending above the 200-day and 50-day exponential moving averages, which is bullish. Additionally, the price action has been stuck inside a three-month symmetrical triangle that could be completed soon.
Symmetrical triangles can break out in either direction but are generally influenced by the direction of the preceding price action. In this case, the XRP could break out to the upside.
XRP price current resistance is $0.59, but a break above it could result in a 37% surge to $0.83, a new one-year high.
The current price action also displays a bullish pennant, increasing the chances of a bullish breakout.
However, if market conditions change and the price fails to break out, XRP could drop to the low trend line of the triangle around $0.55. Further, sell pressure may lower the price to $0.50, invalidating the current bullish thesis.
Conclusion
XRP price is struggling to break free from a 3- 3-month consolidation. Speculation and market volume are the key drivers that can trigger a spike in the price of XRP, encouraging traders to create such a scenario. Ripples price is bullish and poised for a 37% breakout to $0.83, marking its highest level since July 2023.
Frequently Asked Questions (FAQs)
Ripple CEO Brad Garlinghouse mentioned that a “dramatic spike in XRP price” and increased trading volume are the two key catalysts required to boost XRP’s utility and drive the price higher.
The potential resolution of the SEC vs. Ripple lawsuit has set a bullish precedent for XRP, as a favorable outcome could lead to increased market confidence and a subsequent price surge.
If the bullish breakout occurs, XRP could see a 37% increase, bringing the price to around $0.83. This would be a significant achievement, marking the highest price since July 2023.
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Evans Karanja
Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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