The price of XRP has been struggling despite having several partial victories over the past year against the US Securities and Exchange Commission (SEC). The initial rally was not enough to reach the desired level of $1. However, this did not deter bulls, especially with bullish patterns on the chart and many predicting that the price of XRP would reach a fresh all-time high.
XRP price flashes golden cross
A pseudonymous cryptocurrency analyst who goes by the name @Nico369K on X (formerly Twitter), indicated an intriguing formation on the XRP price chart. This formation is known as the “Golden Cross” and is an extremely bullish formation on the chart of any digital asset.
Related Reading: Crypto Analyst Says XRP Still Heading Towards $150
Golden crosses typically appear when an asset’s short-term moving average crosses over the major long-term moving average of that asset. The moving average can come from any time frame, from daily to weekly, and according to the cryptocurrency analyst, the Golden Cross appeared on the weekly chart.
The Golden Cross itself signifies long-term bullish momentum for the asset, suggesting that the XRP price could be headed for a rally. However, that is not the only bullish thing that has appeared on the chart, as the Relative Strength Index (RSI) is also bullish.
According to the crypto analyst, the RSI is currently sitting at around 44.31, which is a significant decline over the past few months. The RSI indicates whether an asset is overbought or oversold, with higher values indicating overbought territory, which is bearish, and lower values indicating oversold territory, which is bullish.
Typically, an RSI of 30 indicates oversold territory and XRP price is still trading above that level. However, a drop in RSI suggests that the altcoin has already fallen into oversold territory and a rally could break out from there.
Other factors that could drive the rally
The Ripple vs. SEC lawsuit was the obvious culprit when it comes to why the price of XRP hasn’t done as well as the rest of its competitors over the past four years. The lawsuit, which began in 2020, has been going on for almost four years now, and in that time, the price of XRP has dropped below $1 and stayed there.
However, the lawsuit is expected to end this year after Judge Analisa Torres ruled that programmatic sales of XRP on secondary exchanges do not qualify as securities. As a result, Ripple is now in settlement talks with the regulator to settle a comfortable outcome for the parties involved.
Ripple CEO Brad Garlinghouse recently said that I am sure that the matter will be resolved soon. After the lawsuit is over, the price of XRP is expected to finally have some freedom of movement. In this case, the price of XRP could rise above $1, with some analysts predicting that the price could exceed $10 by the time the rally ends.
Featured image created with Dall.E, chart from Tradingview.com
