- Speculations of Ripple Labs considering an IPO are doing the rounds on social media.
- XRP price rallied after news hit the wire.
NEW DELHI (CoinChapter.com) — Ripple Labs might be considering an initial public offering (IPO) soon after the court arrives on a judgment in the XRP lawsuit, according to author Linda P. Jones.
Jones was talking with crypto social media influencer Brad Kimes, where she noted that an IPO by Ripple could result in a $100-$150 billion valuation.
Furthermore, the Wall Street veteran noted that Ripple’s “current valuation was very low,” considering the firm has 21 billion XRP tokens in escrow, worth nearly $11 billion at current prices.
If Ripple gets a similar valuation as Coinbase at the launch of its IPO ($86 billion), combined with its XRP holdings, the fintech firm might see a 20x spike from current levels in its valuation.
Jones noted a key reason behind the speculation was a ‘private‘ roadshow meeting in April 2023. A roadshow is a marketing event in which the company and its underwriters meet with potential investors to raise interest in an upcoming IPO.
Fox Business journalist Eleanor Terrett shared that the roadshow attendees included “just about every reputable institutional investment firm on the [Wall] Street. (sic)“
Moreover, Ripple CEO Brad Garlinghouse had previously stated that the San Francisco-based firm might launch an IPO once the XRP lawsuit ended. Additionally, pro-XRP lawyer John E. Deaton speculated that the IPO could launch even if Ripple loses the lawsuit.
[If Ripple gets] the functional equivalent of a slap on the wrist, along with a ruling that ongoing and future sales of #XRP are not securities, the lawsuit will prove a blessing in disguise for Ripple.
John E. Deaton tweeted
Additionally, Jones noted that Ripple’s cash reserves would help the firm launch an IPO in a bad market.
XRP Price Moving Inside Bullish Pattern
Another bullish cue for XRP price comes from the token forming a bullish pattern called the ‘Ascending Triangle.’
A horizontal trendline that connects swing highs and an ascending trendline connecting swing lows forms an ascending triangle pattern. Volume helps determine if a breakout is strong.
Under ideal conditions, buyers would enter the market as the trendlines close the gap. As a result, the toke’s price would push above the horizontal resistance with heavy volumes. Unfortunately, a low-volume breakout on the upside will likely fail, resulting in a pullback.
Per the rules of technical analysis, the price target for a breakout is equal to the triangle’s height at its thickest point. Therefore, XRP price might rally 110.5% to $1.08 once it confirms the pattern.
XRP Price Rallies On IPO Rumors
Meanwhile, XRP price rallied over 9% since June 2 to reach a daily high of $0.54 on June 5 as buyers reacted to the news of IPO rumors. The uptrend helped recover the token’s recent losses. Moreover, XRP price rally helped the token reclaim the $0.53 resistance level.
Bears now defend the resistance level near $0.56, causing XRP price candles to form long upper wicks. Moreover, a break and hold above the immediate resistance might help the XRP token price to target resistance near $0.6 before downside corrections pare gains.
The bearish pressure resulted in XRP price falling nearly 3% to a daily low of $0.53 on June 5.
If the downtrend continues, XRP price might drop to its support level near $0.5. Breaching the immediate support level might result in the token price falling to test its 50-day EMA (purple wave) support near $0.47 before recovering.
The RSI for XRP entered the overbought level, clocking at 70.09 on the daily chart.
The post Ripple IPO Rumors Help XRP Price Spike Over 9% Since June 2 appeared first on CoinChapter.