Key Insights
- After breaking out from a bullish pennant, the Ripple Price (XRP) has risen directly to the $3 mark.
- This price spike coincides with growing interest in the appeal case between the SEC and Ripple.
- According to analysts like Ali, if the momentum continues, XRP may be headed toward the $10 mark.
- Although there is a lot of potential for XRP right now, investors must exercise caution when opening positions.
The crypto market is now bustling with excitement as XRP broke through the $3 price barrier.
This marks a massive milestone for the cryptocurrency since breaking below in 2018.
The upward momentum of XRP also coincides with the heightened anticipation around the ongoing appeal case between the SEC and Ripple Labs.
Here’s a deeper look at what’s been up with the Ripple Price’s movement, and what lies ahead for the cryptocurrency.
XRP Crosses the $3 Milestone
15 January was especially important for the XRP community with the cryptocurrency’s break beyond the 43 price level.
This increase in price shows that investors are becoming more confident, despite Ripple’s ongoing legal battle with the SEC.
As it stands, the SEC’s ongoing appeal could massively affect XRP’s future, especially its classification as a security.
According to Legal Experts like John E. Deaton, the ongoing case is a complex one.
However, even If the SEC wins in the second circuit, Ripple may escalate the issue to the U.S. Supreme Court.
For now, however, Ripple’s smaller victories have put a boost on market sentiment and have contributed to XRP’s rally.
The Dynamics Behind XRP’s Price Explosion
Analysts have stated that due to the difference in market cap, XRP requires less trading volume to achieve price changes compared to Bitcoin.
This fact alone, allows the cryptocurrency to respond more sharply to periods where buying pressure is more intense.
Interestingly, renowned analyst Ali attributed the ongoing price surge on XRP, to a breakout from a bullish pennant formation.
Historically, this formation has always signaled upward momentum for digital and even traditional assets.
Soon after this breakout, XRP price rallied further to the $3 zone, and Ali believes that this trend will continue further upwards to $10 if momentum holds.
According to the chart above, XRP is currently facing resistance around $3.19.
The Fibonacci extension also shows a support forming around the$2.90 price level.
As far as a Ripple XRP price prediction goes, the cryptocurrency might encounter a period of consolidation within this range, before breaking out toward $4.38.
Legal and Regulatory Implications
So far, Ripple’s legal battle with the SEC is one of the defining factors of this price action.
Only last year, Ripple Labs was fined $125 million, which was a win compared to the SEC’s initial $2 billion demand.
If the case escalates further and reaches the Supreme Court, a favorable ruling for Ripple could set the tone for future occurences.
It could also reshape the regulatory landscape for cryptocurrencies in the US.
In the meantime, the incoming leadership shift at the SEC could present changes to its enforcement strategy by introducing more clarity for the crypto sector.
The outcome of the ongoing legal dispute could also influence investor confidence in the broader crypto market.
As the regulatory battle continues, traders should keep an eye out for volatility spikes, despite XRP’s promising outlook.
Is XRP’s Path to $10 A Realistic Goal?
Ali’s $10 price tag prediction for XRP depends on a lot more than technical developments.
Instead, it hinges on the momentum continuing, and the legal outcomes of remaining favorable to Ripple.
The bullish pennant outlined above shows that the upward movement is likely to continue.
However, the resistance around $3.19 and the broader market conditions continue to play major roles in what comes next.
As of now, XRP presents both opportunity and risk. Investors must exercise caution when opening positions and investing.