In the midst of ongoing regulatory challenges, Ripple’s XRP price could experience a significant surge, according to hedge fund professional Thomas Kralow. Despite global stocks making a remarkable comeback, the XRP price remained under intense pressure, trading at $0.50, slightly below the year-to-date high of $0.5863.
The recent slump in Ripple’s price, along with other cryptocurrencies, can be attributed to the Securities and Exchange Commission’s (SEC) lawsuit against major crypto exchanges, Binance and Coinbase. The SEC has levied allegations against the two platforms for offering unregulated products, causing uncertainty and volatility in the cryptocurrency market.
While the outcome of these lawsuits remains uncertain, historical precedence suggests that such litigation processes could take several years to conclude. For instance, the SEC vs. Ripple lawsuit has been ongoing for almost three years, and unless settlements are reached, it is likely to continue for some time.
Release of SEC Documents Raises Hope for Ripple’s Case and Executives
Recent developments in the Ripple case include the release of documents from William Hinman, the former Director of Corporate Finance at the SEC. These documents indicate that the SEC was uncertain about whether Ether was a security back in 2018. Analysts believe that these revelations could potentially support Ripple Labs and its executives, possibly leading to a more favorable outcome for the company.
Thomas Kralow, in an interview expressed his belief that the XRP price could experience a substantial jump to $10 within the next three months. Kralow cited two main catalysts for this prediction. Firstly, he anticipated that Ripple Labs could launch its Initial Public Offering (IPO) soon, with a valuation exceeding $500 million. Secondly, he expressed confidence in Ripple Labs’ ability to prevail in its legal battle against the SEC.
Analyzing the XRP price chart, it reveals a sideways movement in recent days. However, the cryptocurrency has struggled to break above the key resistance point at $0.5624, which forms the upper side of a double-top pattern—a bearish signal in price action analysis. The pattern’s neckline is at $0.4075.
Despite this, there is some positive momentum for Ripple, as the price remains above the 50-day and 100-day exponential moving averages (EMA). A breach below these moving averages would push the price towards the next support level at $0.4075, corresponding to the neckline of the double-top pattern.
On the other hand, if the XRP price manages to surpass the double-top pattern resistance at $0.5624, it would indicate a victory for the bulls and could potentially lead to a rise towards $0.60.
Investors and market participants are eagerly watching the developments in Ripple’s legal battle, along with the potential IPO, as these factors may play a crucial role in shaping the future of the XRP price.