Ripple on the upside again – XRP targets 30% gain after flash start in May

Cryptocurrency Ripple (XRP) rebounded strongly in May after XRP prices fell 28% in April, posting its weakest month since June 2021. And it’s getting even better for Ripple investors because XRP /USD has placed itself in a prime position to gain even more ground in the coming weeks.

Supports give XRP support

The Ripple price was able to climb almost 6.25% in the first two days of May, resulting in an intermediate high of 0.63 US dollars. Buying interest has returned, notably in the area around US$0.58, the mark has been strong support since January 2022 and has already signaled a rise of more than 50% in recent weeks.

XRP price chart with support at $0.58. Source: Trading View

Interestingly, the support at $0.58 currently coincides with the 200-week exponential moving average (200-week EMA, blue line).

Also, the mark is the lower trendline of a broad descending triangle, which sets a worst-case scenario of just $0.18 USD as the price target for the next few months.

XRP price chart with 200 week EMA and descending triangle. Source: Trading View

However, as XRP price is now supported by several key supports at once, it is much more likely that there will be a bounce towards the upper trendline of the triangle first. This would see the Ripple cryptocurrency rally above $0.75, which is a huge gain of nearly 30% from the current price level.

hoping for victory

Over the past few months, XRP has increasingly become a speculative investment product for crypto investors looking to benefit from the SEC’s groundbreaking court case against Ripple.

In December 2020, the stock exchange supervisory authority filed a lawsuit against blockchain payment service provider Ripple, allegedly guilty of illegally selling securities by issuing XRP. However, the rulings so far suggest that the crypto firm has the upper hand so far.

However, the court case has noticeably dampened sentiment around XRP. Of the “older” projects, the cryptocurrency is the only one that failed to improve on its 2017 all-time high following last year’s all-time high run in the market. However, a possible victory in court could cause Ripple’s price to skyrocket just as quickly.

“XRP investors would benefit immensely if Ripple were victorious in court,” analyst Practical Crypto Capital points out. To which he adds:

“Investors should watch the news closely and prepare because looking back over the past year shows that things can go up and then down quickly.”

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