The price of XRP certainly has a pretty good chance of touching $1.50 in the last quarter of this year, after it brought about a bullish crossover. This took place between the exponential moving averages of 20-day and 50-day. The golden cross, as it has been named, has cropped up quite a few times on the charts of this digital asset.
The last occurrence of this golden cross took place on the 10th of August, which then followed up with a price rally of 80% later, with the currency topping out at $1.43 before it got dragged back to the downward part of the scale.
At the same time, the close of the 20-day EMA of XRP above the EMA of the 50-day on the 4th of Feb coincided with a price rally of 400% afterward. With this in motion, the digital asset reached a year high of $1.98, which further attested that the latest golden cross would definitely be prompting a similar response from traders- a bullish attitude that could see them growing in the cryptocurrency market over the next couple of years.
XRP vs. The SEC
The latest surge in the purchase of XRP in the cryptocurrency markets came in the middle of a lawsuit update between Ripple and the SEC. For those who are uninformed, the United States Securities and Exchange Commission recently filed a single action against the cryptocurrency company and two of its executives back in December of 2020. It was alleged that the crypto assets had been raising over $1.3 billion through unregistered security offering through tokens.
To this allegation, Ripple Labs has been aiming to prove that XRP is simply a token of utility- and definitely not a security. This has been based on the speech of William Hinman, the former Director of the SEC, who stated that Ethereum- a blockchain token similar to Ripple’s token was not a security asset.