The XRP price chart is painting a golden cross whereas rising inside an ascending channel.
XRP has the probability of hitting $1.50 within the fourth quarter of 2021 after painting a bullish crossover between its 20-day and 50-day exponential moving averages (EMA).
The so-called Golden Cross has appeared multiple instances on XRP charts in history. Its final incidence was on Aug. 10, which followed up with a circa 80% worth rally later, with XRP topping out seasonally at $1.43 earlier than pulling again to the drawback.
Equally, a close of XRP’s 20-day EMA above 50-day EMA on Feb. 4, coincided with an approximately 400% worth rally afterward. In doing so, XRP reached a year-to-date high of $1.98, additional testifying that the most recent Golden Cross may immediately a similar bullish response from traders.
More cues for an upside transfer come from the Rising Wedge pattern. The higher and decrease trendlines of the ascending channel sample have currently served as resistance and support to XRP’s worth strikes. The cryptocurrency’s ongoing upside transfer additionally adopted a powerful bounce from the Wedge’s decrease trendline, as proven within the chart above.
Thus, XRP’s potential to stretch its rebound towards the Wedge’s upper trendline appears high. That roughly paints a bullish target of $1.50 for XRP.
Ripple vs. SEC
The most recent bout of buying in XRP markets additionally got here in the wake of a recent SEC vs. Ripple lawsuit replace.
For the uninitiated, the U.S. Securities and Exchange Commission (SEC) filed an action against Ripple Labs and two of its executives in December 2020, alleging that they raised over $1.3 billion through unregistered securities providing through XRP tokens.
In response, Ripple Labs has been trying to show that XRP is a utility token—not safety—primarily based on the previous SEC director William Hinman’s speech whereby he noted that Ethereum blockchain token like XRP, isn’t a security asset.https://www.youtube.com/embed/HJyRATEXpMQ
The present SEC regime argues that Hinman’s opinions have been private. But primarily based on recent findings, the U.S. securities regulator may have been lying.
Ripple’s authorized group not too long ago submitted logs in the courtroom that confirmed SEC directing its staff to investigate digital currencies as per the framework offered by Hinman. It may show that Hinman’s speech was not a mere private opinion however an official directive.
The ruling came out on Oct. 8, which was followed by a 17% rally in XRP price.
Bearish reversal pattern
XRP’s Rising Wedge is a bearish reversal sample. Consequently, the cryptocurrency’s gains in the future would face correction risks if the value breaks beneath the decrease trendline.
The potential negative breakout risks sending the XRP worth as little as the utmost distance between the Wedge’s lower and upper trendline. That might put the cryptocurrency’s drawback target below $0.65.
The views and opinions expressed here are solely these of the writer and don’t essentially replicate the views of Cmnnews. Each funding and trading transfer entails risk, it’s best to conduct your personal analysis when making a choice.
Source: Cointelegraph
