A U.S. District Judge dismissed some regulatory allegations against Ripple Labs, the company behind XRP. The judge agreed with Ripple’s argument that roughly half of its sales of XRP didn’t constitute an illegal securities offering. As a result, XRP surged around 70% and reached its largest one-day percentage increase since 2018.
The news was not only positive for XRP price but for one similar coin as well: Stellar (XLM). This coin has surged over 60% in the last 24 hours.
In fact, Stellar (XLM) has made a significant move, breaking above the 1W MA200 for the first time in over a year. This shift is a clear indication of a potential change in the long-term trend, marking an end to a year-long period of trading below this key resistance level.
The 1W MA50 has played a crucial role in supporting this price action over the past two weeks. This is reminiscent of the previous cycle when Stellar hit the 1W MA200 but failed to sustain above it, leading to a medium-term pull-back to the safety of the 1W MA50. This was followed by a parabolic rally from October 2020 to May 2021. Interestingly, the 1W RSI is at the same overbought level now as it was during that period.
Looking ahead, the market presents two possible scenarios. If Stellar fails to close above the 1W MA200, a pull-back is anticipated, presenting an opportunity to buy as close to the 1W MA50 as possible. However, if Stellar manages to close above the 1W MA200, it would be prudent to buy at the market price. Regardless of the scenario, the target remains at the top of the multi-cycle Triangle pattern at 0.7000.
This analysis underscores the importance of monitoring key indicators such as the 1W MA200 and 1W MA50, as well as the RSI, to make informed trading decisions. As always, it’s crucial to stay vigilant and flexible in the ever-evolving cryptocurrency market.
XRP Price Surges: Next target is at $0.92
Based on the analysis provided in the video by More Crypto Online, one of the top crypto analysts on YouTube, the recent news about Ripple (XRP) winning the case against the SEC has significantly impacted the price of XRP. The judge’s ruling that XRP is not a security has not only been a boon for XRP but also for many altcoins, providing much-needed clarity in the crypto space.
The analyst points out that the positive news has resulted in a surge in XRP’s price. However, he also cautions that despite the current bullish trend, the long-term chart still presents significant risk. The analyst’s primary scenario suggests that XRP peaked in a wave 1 in April 2021, and a wave 2 could still be unfolding. This implies that the current surge could be part of a correction rather than a new bullish cycle.
In terms of price targets, the analyst highlights several key levels. The first is the $0.80 mark, which represents a typical range in which a B wave would normally show a reaction. This mark was broken on the evening of July 13th. If XRP can sustain a break above this level, it would be a bullish sign, and the next target could be $0.92!
However, the analyst also provides a warning level. If XRP’s price falls below $0.55, it could indicate a potential downturn or a profit-taking scenario. This level is based on the 50% retracement of the recent surge.
In conclusion, while the recent news about Ripple’s victory against the SEC has resulted in a bullish trend for XRP, the analyst advises caution. The long-term chart still presents significant risk, and the current surge could be part of a correction. However, if XRP can sustain a break above key levels, it could signal a more bullish outlook. As always, investors are advised to monitor the market closely and make informed decisions.
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