XRP Sets Sights at $1 Based on This Indicator as Lawyer Provides Update on SEC vs Ripple Case
XRP, the sixth-largest cryptocurrency by market capitalization, has been in a flux state this week, down a modest 1.5% to trade around $0.62 at press time. However, technical analysis suggests that XRP could be gearing up for a significant bullish move.
Looking at the XRP/USDT chart, we can see that XRP is trading within a long-term triangle pattern, as indicated by the blue lines on the chart. This pattern is commonly seen in technical analysis and is considered a continuation pattern, meaning that when XRP breaks out of this pattern, it should enter a “discovery mode” and find new highs.
One indicator that supports this bullish outlook is the Fibonacci extension indicator. According to this technical tool, XRP’s next upside target is set at $1, which is in line with the 0.236 Fibonacci extension level. This level is derived from the Fibonacci sequence, a mathematical pattern widely used in technical analysis to identify potential support and resistance levels.
Another important metric to consider is the 200-day moving average, which currently stands at $0.56. Moving averages are widely used by traders and analysts to identify trends and potential support or resistance levels. With XRP trading above its 200-day moving average, it suggests that the overall trend is bullish, and the cryptocurrency could continue its upward trajectory.
Furthermore, the Relative Strength Index (RSI) hovers around 50 on all time frames, indicating a neutral market sentiment. An RSI reading above 70 is generally considered overbought, while a reading below 30 is considered oversold. With the RSI hovering around 50, it suggests that XRP is neither overbought nor oversold, leaving room for potential price movements in either direction.
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Show more +The Moving Average Convergence Divergence (MACD) indicator also paints a bullish picture for XRP. The MACD Line is currently above the MACD Signal Line, which is generally interpreted as a bullish signal. This indicator is used to identify changes in the strength, direction, momentum, and duration of a trend.
Lawyer provides an update on SEC vs Ripple case
Amid this technical analysis, Bill Morgan, a lawyer closely following the Ripple vs SEC case, provided an update on the legal battle. Morgan stated: “No appeal will disturb the finding XRP itself is not a security. You are correct the SEC said it will not appeal that finding. The market took it into account as the short term price rises showed. I think the market did care about the lawsuit but the impact on XRP price was baked in by early 2021.”
Morgan further explained that when the lawsuit ends, regardless of the penalty, the market will react positively. He outlined four key factors that will drive this positive reaction: 1) Legal clarity on the status of the asset itself, 2) The lawsuit finally ending, 3) XRP being sold on US exchanges, and 4) Ripple still being able to sell its XRP and use XRP in its cross-border payment and liquidity solutions in the US without being subject to a business-stultifying permanent injunction.
According to Morgan, while the lawsuit still matters, XRP can reach its all-time high this year even without the final resolution of the case and the removal of potential permanent injunctions.
In conclusion, both technical analysis and legal updates suggest that XRP could be poised for a significant bullish move. The triangle pattern, Fibonacci extension indicator, moving averages, RSI, and MACD all point to potential upside for XRP, with the $1 level being a reasonable target. Additionally, the ongoing Ripple vs SEC case appears to be nearing a resolution, which could further fuel XRP’s rally as legal clarity and regulatory certainty are achieved.
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