PrimeXBT Lead Analyst Kim Chua: The Worst May Be Over For XRP As Signs Point Bullish
Ripple’s XRP token, once the second largest cryptocurrency by market cap, has had a monumental fall from grace after an SEC investigation seems to indicate the coin should be deemed a security.
The price of XRP was progressing well until the news broke of the SEC investigation and since then, the major altcoin has seen a drop off in cryptocurrency exchanges listing it. The likes of Coinbase and other major exchanges have even removed trading of XRP.
However, the investigation is still ongoing, and the XRP token is still around and available. This has seen the market, while struck down, continue to progress. Now, there are signals showing that might indicate the worst could be over for XRP and it may be back on the rise.
According to PrimeXBT’s analyst Kim Chua a “Golden Cross” has been spotted on XRP’s price meaning good things could be around the corner.
XRP’s 50-week MA has recently crossed above its 100-week MA, forming a “golden cross”, which is a long-term bullish indicator, explains Chua.
As such, the crossing may attract traders who have a longer-term perspective to accumulate XRP on dips, or others may wait for a price breakout to enter. With the SEC lawsuit ongoing, the chance of an upside surprise is high since investors who had wanted to sell XRP have already done so, and exchanges who needed to delist or suspend its trading have already done so.
Hence, should the SEC ruling be favourable to XRP, the result could be a very explosive rise in price. Even if the ruling turns out not favourable to XRP, downside could be limited since those who needed to sell have already done so.
Additionally, with limited downside but unlimited upside, a trade in XRP could be worthwhile. Now with the golden cross, it somewhat confirms the uptrend, predicts Chua.
Ripple, the parent company, has certainly not thrown in the towel with their project and continues to grow and expand outside of the US. More so, the SEC’s jurisdiction is only in the US and thus there is still room for XRP to exist in the global cryptocurrency space.
About Kim Chua, PrimeXBT Market Analyst:
Kim Chua is an institutional trading specialist with a track record of success that extends across leading banks including Deutsche Bank, China Merchants Bank, and more. Chua later launched a hedge fund that consistently achieved triple-digit returns for seven years. Chua is also an educator at heart who developed her own proprietary trading curriculum to pass her knowledge down to a new generation of analysts. Kim Chua actively follows both traditional and cryptocurrency markets closely and is eager to find future investment and trading opportunities as the two vastly different asset classes begin to converge.