“Buying the dip” is a market maxim and Ripple investors are watching for the cryptocurrency to hit a possible potential low in light of last week’s gains of 10%, according to Justinas Baltrusaltls at Finbold.
Ripple was trading at 0.35 cent, posting gains of almost 10% in the last seven days. During the period, the price of XRP reached a high of 0.36 cents on September 10. Amid the rally, the main focus is on whether the asset will sustain gains.
At the same time, the rally in the value of XRP stemmed from sustained buying pressure over the seven days. Notably, on September 11 the token had a market capitalization of $17.73 billion, a growth of 8.5% from the $16.34 billion recorded on September 4.
Ripple technical data points to a bottom
Overall, XRP is showing signs of strength with the indicators pointing to a possible bottom based on both the moving averages and the summary. In this case, the summary shows neutrality, while the moving average indicates a ‘buy’ for the token.
Currently, the price of XRP is expressing bullish sentiments that align with a projection from the CoinMarketCap crypto community, which projects that XRP will trade at an average value of 0.49 cents at the end of September, representing a growth of around 40%. of the current price.
In addition to the general price movement of the cryptocurrency sector, the outlook for XRP has been significantly related to the ongoing lawsuit between Ripple and the Securities Exchange Commission (SEC). Analysts believe that the case has dragged on for a long time.
Ripple lawsuit with SEC conclusion
In the case, the SEC accuses Ripple and its executives of raising more than $1.3 billion through an unregistered securities offering. After running for nearly two years, US-based legal counsel and XRP advocate Jeremy Hogan believes he is close to a deal, noting that both sides have made their case.
In a September 5 tweet, Hogan stated that the deal would likely happen in late November of this year.
If the lawsuit is resolved in favor of Ripple, it is likely to increase in value. At the same time, if the court rules that it is a security, the price could be affected, possibly lower. However, the ruling will potentially alleviate ambiguity in the regulations, especially in the classification of crypto assets as securities.
It is also worth noting that amid the legal issues facing Ripple, the number of new accounts created on the XRP Ledger appears to be on the decline. This has come about despite ongoing forays by Ripple to market the XRP Ledger to different players globally.
Although the outcome of the lawsuit will subject Ripple to positive or negative reinforcements, the value of XRP will potentially benefit from the company’s ongoing partnerships to facilitate cross-border payments.
The company continues to register partnerships, most recently with Travelex Bank, launching its cryptocurrency on-demand liquidity (ODL) service in Brazil.
Ripple is trading at 0.3546 at the start of this Monday and the 70-period moving average is below the last candle.