XRP price risks 30% decline despite Ripple’s legal win prospects

Despite hopes that Ripple would win its long-running legal fight against the U.S Securities and Exchange Commission (SEC), Ripple’s (XRP) stock price fluctuated between profits and losses on September 19,

Ripple and SEC agreed to speed up the lawsuit Friday in order to find out if $XRP is security. From the updates of the case, it sounds like it’s in the favor of @Ripple pic.twitter.com/SAyl4VLxdM
— Jeff Sekinger (@JeffSekinger) September 19, 2022

Fed spoils SEC against Ripple euphoria

While the XRP/USD currency pair fell by more than 1% to $0.35, it formed sharp bullish and bearish candlesticks on Sept. 19. This means that the intraday performance of the XRP/USD pair suggested a growing bias conflict between traders.

Daily chart of XRP/USD price. Source: TradingView

This indecisiveness may be caused by XRP’s exposure other than the SEC vs. Ripple suit. The Federal Reserve’s potential to raise its benchmark interest rates by 75 or 100 basis point at their September 20 policy meeting.

Cointelegraph reported that fears over aggressive rate increases have pushed the crypto market lower all year. This includes Bitcoin (BTC), Ether (ETH), and Ether (ETH). XRP, with its positive correlation to Bitcoin since October 2021, is not immune.

Daily correlation coefficient for XRP/USD & BTC/USD Source: TradingView

For example, XRP’s daily correlation coefficient with Bitcoin was 0.47 on Sep. 19. If the reading is 1, it means that both assets are moving in lockstep.

In Q4, XRP price at risk of falling below $0.25

Cheds, an independent market analyst, stated that XRP has been moving within a rectangular range from June and that there is nothing to be excited for.

The resistance is $0.38-$0.40 and the support is $0.28-$0.30. XRP’s prices dropped following testing resistance. As of Sep. 19, they were heading towards the support area as shown below.

Daily price chart for XRP/USD with head-and shoulders setup. Source: TradingView

A move towards the rectangular range support could trigger a classic bearish pattern known as the head-and shoulders. This is defined by three consecutive peaks rising atop a common support level. The middle peak (head), is higher than the two other (left and right shoulders).

Related: Ether staking could trigger securities law — Gensler

After the price breaks below the support line, a head-and-shoulders trend is formed. The price falls as far as the distance between the support and the middle peak. This theory is applied to XRP’s daily charts and $0.242 is the downside target.

In other words, the XRP price could fall another 30% this year due to macro catalysts.

com. You should do your research before making any investment or trading decision.

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Donna Burk

Donna Burk– Business News My Name is Donna Burk and I am also the main source from the ‘Dailynewssheet.com’ of all the exclusive and most delicate visualization of the activities in the business sector. My first step towards this journey was taken in the very early years of my life. I started with an independent financial consultant. However, I only had almost 4 years of skills and experience in this market. I have always been a free personality and like to fly one place to another, to explore more and more. Moreover, this passion and craze of traveling gave me a chance to report a section for best news associations. Last but not least, I am presently working full-time as an editor.

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