Oliver Michel, the founder and CEO of Tokentus Investments, notes five reasons he believes XRP is on the verge of a “disproportionate” price rally.
Michel recently disclosed this while speaking at Germany’s Frankfurt Stock Exchange. He stressed that he became involved with Ripple and XRP in 2017 and has been observing the crypto asset for several years. Michael acknowledged the large following XRP commands, noting that he wishes to share his observations with the community.
Ripple’s Positioning for Blockchain Infrastructure Services
He believes these observations are the reasons XRP might be gearing up for an explosive rally. The first observation is Ripple’s recent remarks confirming its mission to provide digital asset infrastructure for companies. Note that on July 19, Ripple put out a post outlining its ambition.
Ripple’s ambition is to be the #1 digital asset infrastructure provider for financial services by building the core components — on- and off-ramps, custody, compliance and liquidity — needed for enterprises to integrate blockchain into their business. Learn how our product…
— Ripple (@Ripple) July 19, 2024
The firm stressed that its primary goal is to become the leading infrastructure provider for enterprises looking to integrate blockchain. Michel emphasized that such a bold statement from Ripple is rare. Notably, while this remains a fact, such remarks have always come from different individuals rather than the firm itself.
The fact that Ripple thought it necessary to put out this statement at this point shows that something is going on behind the scenes. Michel said his first observation is that the firm is currently positioning itself to serve these enterprises.
XRP Wedge Pattern
Meanwhile, the second observation is a massive symmetrical triangle, or wedge, in the XRP chart. Michel observed that XRP had formed the largest symmetrical triangle he had ever seen, which has lasted for six years. He called attention to the XRP’s recent movements, which have been more bullish than the rest of the market.
Notably, XRP recently recorded a massive 60% upsurge while the rest of the market consolidated. Amid the ongoing market correction, XRP has shown more resilience. Michel also highlighted some occasional price surges XRP has recently witnessed.
According to him, these price movements suggest that XRP might be setting the stage for an upward push. He noted that a breakout of the symmetrical triangle could lead to the expected price explosion. Michel believes the rally would be much higher than the occasional price surges.
Ripple Stablecoin, Shares Buyback, and Lawsuit Resolution
His third observation is the upcoming Ripple stablecoin RLUSD, which the firm confirms will launch before the end of 2024. Meanwhile, he spotlighted Ripple’s shares buyback as the fourth observation. For context, Ripple CEO Brad Garlinghouse recently revealed that the firm is on track to buy back $1.4 billion of its own shares.
The fifth and last observation is the forthcoming final resolution of the Ripple vs. SEC lawsuit. Notably, Ripple CEO predicted that the final verdict might come in the summer. The end of the lawsuit could finally take off the legal pressure that has kept XRP from securing sufficient institutional adoption in the U.S.
Concluding his speech, Michel argued that these observations suggest that something is brewing for XRP. According to him, XRP could secure a “disproportionate” price explosion that is too large to compare to rallies from other assets. At the reporting time, XRP trades for $0.591, down 5% over the past 24 hours.
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