Find out which two major drivers, in the opinion of Ripple CEO Brad Garlinghouse, will raise the price of XRP. Examine the current price movement and any possible bullish breakouts.
For nearly two weeks, the price of XRP has been stable as the market has recovered. Macroeconomically speaking, XRP is in a symmetrical triangle that may resolve on either side, contingent upon the state of the market. The SEC v. Ripple lawsuit may soon come to an end, which has created a bullish precedent for the asset, even though its price has remained mostly unchanged. But a leaked document purports to show the catalysts that could drive up XRP’s price, according to the CEO of Ripple.
Catalysts for XRP Price According to Ripple CEO
XRP community figure Anderson shared a document from the SEC v. Ripple lawsuit, showing that the regulator recognized the role of speculation in driving up XRP utility.
Even the SEC understands the important role of SPECULATORS and speculative volume in starting up the #XRP flywheel, so that XRP can be used in Ripple's products.
— Anders 🏁🌏 (@X__Anderson) September 23, 2024
So, if there will be a big speculative rise in the price of XRP, along with a natural rise in trading volume, this… pic.twitter.com/rsLL6tuQX5
From the document, the SEC points out that Ripple CEO Brad Garlinghouse told members of the Ripple Board that a “dramatic spike in XRP price” was a necessary “catalyst to the XRP flywheel.”
Anderson pointed out that the SEC was unable to understand why the regulator included speculation in the lawsuit because it recognized the significance of speculation in initiating the XRP flywheel.
However, Anderson believes that in order for XRP to become useful in Ripple’s products, like On-Demand Liquidity (ODL), there should be a significant increase in XRP’s price coupled with trading volume.
It is implied that there will be an increase in XRP to stimulate demand and utility, comparable to or greater than what happened in 2017.
Will XRP Price Fly Higher?
It is bullish that ripple price is trending above both the 50-day and 200-day exponential moving averages. Furthermore, the price action has been trapped inside a symmetrical triangle that has been forming for three months and may soon finish.
Although symmetrical triangles can form in any direction, their formation is typically influenced by the previous price action’s direction. In this instance, an upside breakout for XRP is possible.
The current resistance level for XRP price is $0.59, but a break above it could trigger a 37% increase to $0.83, a new high for the year.
There is a bullish pennant visible in the current price action, which raises the possibility of a bullish breakout.
But XRP might fall to the triangle’s low trend line, which is approximately $0.55, if the market conditions shift and the price is unable to break out. Additionally, sell pressure could drive the price down to $0.50, refuting the present bullish thesis.
Conclusion
The price of XRP is having difficulty emerging from a three-month consolidation. The main factors that can cause an increase in the price of XRP are speculation and market volume, which incentivizes traders to set up such a situation. Bullish on ripples, the price is set to rise 37% to $0.83, the highest level since July 2023.