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Over the past week, XRP has predominantly traded in the green zone, maintaining a steady position above the $0.50 support level.
With persistent questions in the crypto market regarding XRP’s ability to break out of the extended consolidation phase observed for several months, a crypto analyst has suggested that the token might be on the brink of a significant move.
Specifically, the analyst, Egrag Crypto, in an X (formerly Twitter) post on April 23, highlighted the double bottom formation observed in XRP’s chart as signaling robust bullish momentum, instilling confidence in an imminent upward surge.
Furthermore, the analysis identified the consolidation zone as a supply zone and the wicking range, with these adjustments indicating a favorable setup for XRP’s price to initiate a notable upward movement.
Building on the potential bullish momentum, the market expert suggested that XRP could rally to around $1.4, representing a 180% gain from current prices.
“XRP color code to $1.4. The double bottom formation is giving us a strong bullish signal, and I’m highly confident that the thrust will soon begin,” the analyst said.
XRP on bullish momentum
Indeed, such a surge could reignite investor interest in XRP, which has generally failed to rally alongside the broader market. Currently, the token appears to be deriving momentum from ongoing developments involving Ripple and the Securities and Exchange Commission (SEC).
Notably, there has been anticipation regarding Ripple’s response to the regulator’s request for a $2 billion fine against the company. In its filing, Ripple addressed the SEC’s request for penalties and remedies, disputing most of the regulator’s claims and urging the judge to impose a penalty of no more than $10 million.
Ripple contends that the SEC lacks allegations or findings of recklessness or fraud regarding the sale of XRP tokens. The company demanded evidence from the SEC to establish the likelihood of future violations and highlighted changes made to XRP sales and contracts to prevent such violations.
Additionally, Ripple defends itself against claims regarding on-demand liquidity buyers, asserting that the SEC has not demonstrated any financial losses suffered by institutional buyers due to Ripple’s unregistered status.
XRP millionaires surging
In the meantime, the bullish momentum surrounding XRP is evident in other on-chain metrics. Data from crypto analysis platform Santiment indicates that, as of April 2023, the number of wallets holding at least one million XRP stands at 2,013, just shy of the previous peak recorded in June 2023 and on the verge of an all-time high by just one wallet.
At the time of writing, XRP was trading at $0.547, having rallied 1.7% in the last 24 hours. On a weekly timeframe, the token has seen an increase of almost 12%.
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