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The XRP price chart depicts a golden cross rising within an ascending channel.
After painting a bullish crossover between its 20-day and 50-day exponential moving averages, XRP has a good chance of reaching $1.50 in the fourth quarter of 2021. (EMA).
The so-called Golden Cross has appeared on XRP charts numerous times in the past. Its most recent occurrence was on Aug. 10, which was followed by an approximately 80% price rally, with XRP topping out seasonally at $1.43 before pulling back to the downside.
Similarly, a close of XRP’s 20-day EMA above 50-day EMA on Feb. 4, coincided with an approximately 400% price rally afterward. In doing so, XRP reached a year-to-date high of $1.98, further attesting that the latest Golden Cross could prompt a similar bullish response from traders.
More cues for an upside move come from the Rising Wedge pattern. The upper and lower trendlines of the ascending channel pattern has lately served as resistance and support to XRP’s price moves. The cryptocurrency’s ongoing upside move also followed a strong bounce from the Wedge’s lower trendline, as shown in the chart above.
Thus, XRP’s potential to stretch its rebound towards the Wedge’s upper trendline seems high. That roughly paints a bullish target of $1.50 for XRP.
Ripple vs. SEC
The latest bout of buying in XRP markets coincided with an update to the SEC vs. Ripple lawsuit.
For the uninitiated, in December 2020, the US Securities and Exchange Commission (SEC) filed an action against Ripple Labs and two of its executives, alleging that they raised more than $1.3 billion through an unregistered securities offering using XRP tokens.
In response, Ripple Labs has been attempting to demonstrate that XRP is a utility token rather than a security asset, citing former SEC director William Hinman’s speech in which he stated that Ether, a blockchain token similar to XRP, is not a security asset.
The current SEC regime contends that Hinman’s views were purely personal. However, according to recent findings, the US Securities and Exchange Commission may have lied.
Ripple’s legal team recently submitted logs in court that showed the SEC directing its employees to analyse digital currencies using Hinman’s framework. It could establish that Hinman’s speech was not merely a personal opinion, but rather an official directive.
Judge Netburn ruled in favour of Ripple Labs and ordered the proofs to be reviewed “in camera.”
#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 ruling came out on Oct. 8, which was followed by a 17% rally in XRP price.
Bearish reversal pattern also in pl
XRP’s Rising Wedge is a bearish reversal pattern. As a result, the cryptocurrency’s gains in the future would face correction risks if the price breaks below the lower trendline.
The potential negative breakout risks sending the XRP price as low as the maximum distance between the Wedge’s lower and upper trendline. That would put the cryptocurrency’s downside target under $0.65.