The XRP price has struggled despite scoring multiple partial victories against the US Securities and Exchange Commission (SEC) over the past year. The initial increase was not enough to reach the coveted $1 level. However, this hasn’t deterred the bulls, especially with bullish formations on the chart and multiple predictions of XRP price hitting a new all-time high.
XRP price flashes Golden Cross
A pseudonymous crypto analyst who goes by the name @Nico369K on the X Platform (formerly Twitter) did that pointed out an interesting formation on the XRP price chart. This formation is known as a ‘Golden Cross’ and is an exceptionally bullish formation on the chart of any digital asset.
Related reading: Crypto Analyst Says XRP Still on Track to Rise to $150
Golden crosses usually occur when the short-term moving average of an asset crosses a major long-term moving average of that asset. The moving average can be on any time frame ranging from daily to weekly, and according to the crypto analyst, the Golden Cross has appeared on the weekly chart.
The Golden Cross itself indicates long-term bullish momentum for an asset, suggesting that the XRP price could be heading towards a rally. However, this 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 around 44.31, which has been a significant decline in recent 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, RSIs of around 30 marks are oversold territory, and the XRP price is still higher than this level. However, the decline in the RSI suggests that the price of the altcoin has already fallen into oversold territory and a rally could break out as a result.
Other factors that could trigger a rally
The Ripple Vs. The SEC lawsuit is the obvious culprit when it comes to why the XRP price hasn’t performed like the rest of its peers over the past four years. The lawsuit, which started in 2020, has been raging for almost four years now, and in that time the XRP price has fallen below $1 and stayed there.
Related reading
However, the lawsuit is expected to end this year after Judge Analisa Torres ruled that programmatic XRP sales on secondary exchanges did not qualify as securities. As a result, Ripple is now engaged in settlement talks with the regulator to determine a comfortable outcome for the parties involved.
Ripple CEO Brad Garlinghouse recently said yes convinced that the matter will soon be over. Once the lawsuit is over, the expectation is that the XRP price will finally have the freedom to move. In this case, the XRP price could rise past $1, with some analysts predicting that the price could surpass $10 by the time the rally is over.
Featured image created with Dall.E, chart from Tradingview.com