The XRP price has dropped by 0.5% in the past 24 hours, dipping to $0.425301 amid a similar fall for the cryptocurrency market as a whole.
XRP is now down by 7.5% in the past week and by 18.5% in the last 30 days, yet it has risen by 25% since the start of 2023, with the wider market so far enjoying a partial recovery this year.
Encouragingly, XRP’s 24-hour trading volume has topped $1 billion in the past few days, and while this has largely been led by selling, the increased liquidity could end up translating to gains in the near future.
This is particularly the case when Ripple is awaiting the end of its long-running legal battle with the SEC, with many experts forecasting a positive outcome for the company, something which would boost XRP massively.
XRP Price Prediction as $1 Billion Trading Volume Floods In – Can XRP Reach $3 in 2023?
Following a noticeable fall earlier in the week, it now seems that XRP is consolidating around the $0.42 support level and may be ready for a recovery.
Its 30-day moving average (yellow) has stopped falling further below the 200-day average (blue) and appears to have bottomed out, meaning that XRP is due a rebound.
Likewise, XRP’s relative strength index (purple) has begun rising again after dipping just below 40 early this morning, providing another sign of recovering strength.
The suspicion that XRP may be in for a rally in the very near future is reinforced by the coin’s trading volume, which after falling as low as $400 million (around the time of the coin’s most recent drop) has risen to $1.1 billion.
This is a good sign since just as low volume often precedes drops, higher volumes have often provided the conditions for XRP price increases.
More fundamentally, Ripple published a report earlier this week on central bank digital currencies, highlighting the key role it’s likely to play in the world’s future monetary system, with CBDCs set to reach a global value of $213 billion by 2030.
The report also highlighted the stablecoin pilots Ripple is currently undertaking with the Republic of Palau, the Central Bank of Montenegro, and the Royal Monetary Authority of Bhutan.
This report adds to a similar report from Juniper Research, which ranked Ripple as the world’s number-one CBDC vendor.
Given Ripple’s status in the CBDC and digital payments sector, it’s more than well positioned to ride a wave of growth once its case with the SEC ends, something which is expected to happen in the coming months.
Promisingly, legal experts such as attorney Jeremy Hogan have argued that the SEC has fought a pretty weak case, insofar as it has failed to prove that Ripple’s early sale of XRP satisfied the Howey test.
At the same time, Ripple has secured a number of important rulings in recent months, including having the court uphold its motion to exclude a witness the SEC had called upon to testify that XRP buyers had a reasonable expectation of profit when they first bought the digital asset.
For this reason, it’s credible to expect that Ripple will gain a positive outcome and that XRP will rally significantly as a result.
It could easily shoot towards $1 in the immediate aftermath of a favorable outcome, while it could then go on to surpass its current ATH of $3.40, particularly if the wider market becomes more bullish towards the end of the year.
This article was originally published by CryptoNews.