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XRP Price Bounces on SEC Loss: Can Ripple Hit $1?

Published October 4, 2023 12:06 PM
Nikola Lazic
Published October 4, 2023 12:06 PM

Key Takeaways

  • Ripple Labs gained two regulatory wins.
  • XRP price bounced from a major support.
  • $1 target is possible to be reached soon but further confirmation is needed.

Ripple‘s Legal Battle with the SEC took a new turn as Judge Analisa Torres rejected an early appeal request, dealing a setback to the commission. In a pivotal development, the judge declined the SEC’s request for an early appeal, dealing a significant blow to the regulatory agency’s plans to challenge specific aspects of her previous ruling.

The crux of the judge’s decision centered on distinguishing between Ripple‘s XRP transactions. While institutional sales were categorized as securities transactions, programmatic sales and other distributions were excluded, grounded in the distinct profit expectations observed between programmatic and institutional buyers.

Two Wins for Ripple Labs

In a separate legal development, Ripple Labs Inc. secured a significant victory, receiving full authorization from the Monetary Authority of Singapore (MAS) to operate as a digital payment token service provider. This official approval not only strengthens Ripple’s position within the cryptocurrency sphere but also paves the way for its Asia Pacific subsidiary, Ripple Markets APAC Pte Ltd, to expand its influence across the region.

These developments have triggered a surge in XRP’s price, closely watched by the crypto community for its potential implications on Ripple and the broader crypto market. Presently, Ripple’s XRP token has experienced a 4% increase, trading at $0.53. This marks a 5.05% growth over the past month and a 6.77% rise in the last week.

Could this be the setup for a 50% surge, finally propelling it to the coveted $1 milestone?

Ripple Price Analysis

On January 4, 2021, XRP reached an all-time high of $3.50, but this marked the beginning of an extended bear market. By March 13, 2020, the price had plummeted dramatically to $0.10. While a subsequent bullish wave made an attempt to surpass the previous record, it peaked at just above $2 on April 15, 2021.

XRP/USD daily chart
XRP/USD daily chart

The peak in April marked the conclusion of XRP’s preceding bullish cycle. Subsequently, its value took a sharp downturn, falling to $0.285 by June 18, 2022. A subsequent modest uptick saw the price reach $0.92 by June 14 this year. Nevertheless, XRP later experienced a significant 50% decline from its yearly peak, bottoming out at $0.46 on September 11.

When analyzing these price fluctuations, a symmetrical triangle pattern emerges, resembling a potential WXYXZ correction. The pattern’s resistance is traced back to the all-time high, while its support is linked to the low on March 13, 2020. The recent dip on September 11 coincided with this support trendline, and, at least for the time being, it has held the price within its boundaries. The token subsequently rebounded by 18.5%, reaching $0.54, where it currently trades.

This September 11 rebound could represent a critical turning point, with the ascending support level (wave Z) potentially propelling XRP into a sustained bullish trajectory. Such an upswing would necessitate a breakthrough of the descending resistance, initiating a multi-year bullish phase that might even surpass previous record highs.

Absence of Bullish Activity

However, the current price structure doesn’t entirely align with this optimistic outlook. The absence of significant bullish activity suggests that it needs a more substantial recovery to shift to a bullish stance. Until then, the potential for continued downward trends remains a possibility.

A bounce seen occurred
A bounce seen occurred

Examining the 4-hour chart in detail, it’s evident that while there has been a bounce, it pales in comparison to the preceding decline. This recovery, at least for now, doesn’t hold enough significance to suggest the onset of a major uptrend.

To shift to a bullish outlook, it requires a more substantial increase. Specifically, in pursuit of the $1 target, it would necessitate a breakout above the descending trendline and the establishment of a new yearly high. While this outcome remains within the realm of possibility, current chart data don’t support it.

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.

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