SEC’s Loss to Ripple Bolsters XRP Sentiment — How High Can It Soar?
XRP spikes 10% on the positive news, and is still up. Will it start a major uptrend?
Key Takeaways
- XRP has risen by 10% in the last 24 hours.
- It’s still in a larger horizontal range.
- Chart analysis points out the potential commencement of a significant uptrend.
The protracted legal tussle between Ripple and the SEC over XRP‘s issuance and sales has reached a resolution, with the SEC opting to withdraw its claims. Notably, the SEC has decided to drop the civil charges against Ripple’s CEO, Brad Garlinghouse, and its co-founder, Chris Larsen.
To share this development on October 19 in a post on X (formerly known as Twiter) was James K. Filan, a former federal prosecutor who has been a keen observer and commentator on this case.
While the SEC has dropped charges against Ripple’s CEO, Brad Garlinghouse, and co-founder, Chris Larsen, it’s crucial to note that the broader case against Ripple as an entity remains active. This means the legal battle will persist, focusing on the company’s activities independently from its leadership.
Nonetheless, this development has boosted XRP sentiment, leading to a roughly 10% price surge since yesterday, placing XRP back above the $0.50 mark. Having been in a 63-day sideways consolidation, the question arises: Can this news act as a catalyst for a definitive price movement?
XRP Price Analysis
XRP reached its all-time high of $3.50 on January 4, 2021, but what followed was a protracted bear market that saw its price plummet to a meager $0.10 by March 13, 2020. While 2021 saw a subsequent surge, with a peak just over $2 on April 15, it fell short of reclaiming its earlier peak.
Following the peak in April 2021, the token saw a significant decline, plummeting to $0.285 by mid-June 2022. June of this year brought a brief rally, with XRP reaching $0.92, but it was short-lived, as the coin experienced a substantial 50% drop from that high, settling at $0.46 on September 11.
The price movement reveals a symmetrical triangle, suggesting a potential WXYXZ correction. The triangle’s upper line connects to its all-time high, while the lower line links to the March 2020 anchor point. Notably, the recent dip in September tested and respected this ascending support trendline, bouncing 18.5% to $0.54 on October 1.
Significant Turning Point For XRP
This rebound on September 11 could signify a significant turning point for XRP. If the current wave (wave Z) continues to honor the upward support trend, it may propel XRP into an extended bullish phase, potentially challenging and surpassing its previous highs.
With today’s encouraging upward momentum, a potential breakout above the horizontal range, which the price has maintained since August 17, is in sight. If this recent movement represents the initial sub-wave of the anticipated wave 2, it should remain above the $0.50 horizontal level, using it as a support.
These two price dynamics – a higher high above $0.55 and a higher low above $0.50 – would set the stage for the expected upward movement, potentially driving XRP’s price to $0.82 in the near future.
Notably, this price point coincides with the most significant resistance level, marked by a descending trendline originating from the daily chart’s symmetrical triangle.
Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
