Despite multiple partial victories against the United States Securities and Exchange Commission (SEC), the XRP price continues to struggle to reach the coveted $1 mark. However, bulls remain optimistic due to the appearance of a Golden Cross formation on the chart. This formation, as pointed out by a pseudonymous crypto analyst, indicates a bullish trend for the digital asset.
The Golden Cross formation occurs when a short-term moving average crosses over a major long-term moving average on the chart. In the case of XRP, this formation has appeared on the weekly chart, signaling long-term bullish momentum for the asset. This suggests that the XRP price could be gearing up for a rally in the near future.
Bullish Indicators
In addition to the Golden Cross formation, the Relative Strength Index (RSI) for XRP is also indicating a bullish trend. Currently sitting at around 44.31, the RSI has dropped significantly over the past few months. The RSI is a tool used to determine if an asset is overbought or oversold, with values above 70 indicating overbought conditions and values below 30 indicating oversold conditions. The decline in the RSI for XRP suggests that the altcoin’s price may have already dipped into oversold territory, potentially signaling a potential rally.
Legal Battles and Price Impact
The ongoing legal battle between Ripple and the SEC has been a major factor in the XRP price struggle. The lawsuit, which began in 2020, has kept the price of XRP below $1 for almost four years now. However, with recent developments in the case, including Judge Analisa Torres ruling that programmatic XRP sales on secondary exchanges do not qualify as securities, there is hope for a resolution soon.
Ripple CEO Brad Garlinghouse has expressed confidence that the lawsuit will soon come to an end, leading to greater freedom for the XRP price to move. Once the legal battle is finally over, analysts predict that the XRP price could surge past $1 and even reach $10 by the time the rally is complete.
While the XRP price has faced challenges due to legal battles and regulatory issues, recent bullish indicators on the chart suggest that a rally could be on the horizon. The appearance of a Golden Cross formation and the decline in the RSI point towards potential upward momentum for XRP. With the possibility of the SEC lawsuit coming to an end soon, there is hope that the XRP price will finally be able to reach new all-time highs.
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