After a bullish crossover of its 20-day exponential moving averages (EMA) and 50-day exponential moving ranges (EMA), XRP stands a good chance to hit $1.50 in 2021’s fourth quarter.
In history, the so-called Golden Cross appeared on XRP charts multiple times. Its last appearance was Aug. 10, followed by a price rally of around 80%. XRP reached $1.43 seasonally before falling to the downside.
Similar to the above, a close of XRP’s 20-day EMA over 50-day EMA February 4 coincided with a roughly 400% price rise. XRP also reached a $1.98 year-to-date peak, further proving that traders could respond similarly to the Golden Cross.
Daily price chart for XRP/USD featuring Golden Cross. Source: TradingView.com
The Rising Wedge pattern provides more cues to an upside move. The ascending channel pattern’s upper and lower trendlines have been providing support and resistance to XRP’s price movements in recent years. As shown in the chart, the cryptocurrency’s continued upside move was also accompanied by a strong bounce from Wedge’s lower trendline.
XRP’s chances of extending its rebound towards Wedge’s top trendline seem high. This gives XRP a bullish target price of $1.50
SEC vs. Ripple
A recent update on the SEC vs. Ripple lawsuit also prompted the latest XRP market buying.
The U.S. Securities and Exchange Commission filed a lawsuit against Ripple Labs and its two executives in December 2020. They claimed that they raised more than $1.3 billion via an unregistered securities offer via XRP tokens.
Ripple Labs responded by trying to prove that XRP was a utility token and not security. This is based on William Hinman, former SEC director, who noted that Ether (a blockchain token similar to XRP) is not a security asset.
According to the current SEC regime, Hinman’s opinions are considered personal. Recent findings suggest that the U.S. securities regulator might have been lying.
Ripple’s legal staff recently filed logs in court showing that SEC directed its employees to analyse digital currencies according to the Hinman framework. This could show that Hinman’s speech wasn’t just a personal opinion, but an official directive.
Related: Judge rejects XRP hodlers’ request to join SEC contre Ripple case
Judge Netburn ruled in favor Ripple Labs, and added proofs to their “in-camera” review.
#XRPCommunnity #SECGov v. #Ripple #XRP BREAKING: 1/3 Judge Netburn Orders the SEC to submit for in camera review the two documents related to the SEC’s meetings with law firms and the email chain concerning discussions with a third party who received guidance from the SEC pic.twitter.com/zbjDi7HKYJ
— James K. Filan (@FilanLaw) October 8, 2021
The Oct. 8 ruling was followed by an 17% increase in the XRP price.
Pl. bearish reversal pattern
Rising Wedge in XRP is a bearish reversal trend. The cryptocurrency’s future gains would be subject to correction risks if they fall below the trendline.
XRP/USD chart with Rising Wedge breakout setup. Source: TradingView.com
A negative breakout could send the XRP price to as low as the distance between the Wedge’s lower and higher trendlines. This would bring the cryptocurrency’s downside target to $0.65
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