Ripple, widely regarded as the third largest cryptocurrency up until last December, has been on a tear, rising over 1000% in recent months. Now analysts weigh the possibility of either a wider correction or a breakout rally.
“This past week, ripple’s XRP started a downside correction from well above $1.65,” writes Aayush Jindal for NewsBTC. “XRP extended its decline below the key $1.50 support, similar to Bitcoin and Ethereum. It opened the doors for a nasty spike below the $1.20 support. However, the bulls were active above the $1.15 level. A low is formed near $1.162 and the price is now rising. It broke the $1.25 and $1.30 resistance levels. There was a break above the 23.6% Fib retracement level of the downward move from the $1.97 high to $1.162 swing low. It is now trading well above $1.3500 and the 100 simple moving average (4-hours). There is also a major contracting triangle forming with resistance near $1.50 on the 4-hours chart of the XRP/USD pair.”
It wasn’t too long ago that XRP token was worth a few cents. After shooting up to a high of $1.96 weeks ago, XRP is now settling above the dollar mark, with indicators it could break resistance at $1.20 and $1.30.
As Jindal points out, Ripple is well above its 100-day simple moving average or SMA.
The background to this is the fallout from an SEC suit, an unusual move against the cryptocurrency operator, where the SEC is contending that Ripple leaders failed to register a security.
The suit, brought in December, raised all sorts of debate and speculation over the nature of the XRP token itself and its relation to Bitcoin and Ethereum.
Now, the SEC seems to be losing.
“Ripple’s position in the lawsuit is becoming more favorable as the SEC’s ability to prove their case diminishes,” writes an unnamed author at DailyCoin. “The judge has denied the SEC access to the personal information of Brad Garlinghouse and Chris Larsen … what’s more, the SEC claimed access to the information despite the co-founder’s agreement to provide relevant data regarding their activity. The multi-million dollar case has reached a tipping point in the eyes of many XRP holders.”
Some also suggest that the suit was personal, which could be why it was being brought in the last days of the chairmanship of Jay Clayton.
“With few days to go in office, the Jay Clayton-led SEC sued Ripple in December 2020,” writes Daniel Okorafor for Be(in)Crypto. “This raised suspicion amongst many that the lawsuit was a personal attack on Ripple and its founders, Brad Garlinghouse and Chris Larsen.”
If you have any exposure in crypto, follow the Ripple case. It will have direct impact on markets, but also, secondary impact on how we think of coins in the future.
