XRP price eyes $1.50 next after bouncing 30% in just 10 days

XRP has likelihood of hitting $1.50 within the fourth quarter of 2021 after portray a bullish crossover between its 20-day and 50-day exponential shifting averages (EMA).

The so-called Golden Cross has appeared a number of instances on XRP charts in historical past. Its final incidence was on Aug. 10, which adopted up with a circa 80% worth rally later, with XRP topping out seasonally at $1.43 earlier than pulling again to the draw back. 

Equally, an in depth of XRP’s 20-day EMA above 50-day EMA on Feb. 4, coincided with an roughly 400% worth rally afterward. In doing so, XRP reached a year-to-date excessive of $1.98, additional testifying that the newest Golden Cross may immediate an identical bullish response from merchants.

XRP/USD each day worth chart that includes Golden Cross. Supply: TradingView.com

Extra cues for an upside transfer come from the Rising Wedge sample. The higher and decrease trendlines of the ascending channel sample has currently served as resistance and assist 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 in direction of the Wedge’s higher trendline appears excessive. That roughly paints a bullish goal of $1.50 for XRP.

Ripple vs. SEC

The most recent bout of shopping for in XRP markets additionally got here within the wake of a current SEC vs. Ripple lawsuit replace.

For the uninitiated, the U.S. Securities and Change Fee (SEC) filed an motion towards Ripple Labs and two of its executives in December 2020, alleging that they raised over $1.3 billion by way of an unregistered securities providing through XRP tokens.

In response, Ripple Labs has been attempting to show that XRP is a utility token—not safety—primarily based on the previous SEC director William Hinman’s speech whereby he famous that Ether, a blockchain token like XRP, shouldn’t be a safety asset.

The present SEC regime argues that Hinman’s opinions had been private. However primarily based on current findings, the U.S. securities regulator could have been mendacity.

Ripple’s authorized crew not too long ago submitted logs within the courtroom that confirmed SEC directing its staff to investigate digital currencies as per the framework supplied by Hinman. It may show that Hinman’s speech was not a mere private opinion however an official directive.

Associated: Decide rejects XRP hodlers’ bid to hitch SEC towards Ripple case as defendants

Decide Netburn dominated in favor of Ripple Labs and added the proofs to their “in digicam” overview.

The ruling got here out on Oct. 8, which was adopted by a 17% rally in XRP worth.

Bearish reversal sample additionally in pl

XRP’s Rising Wedge is a bearish reversal sample. Consequently, the cryptocurrency’s positive factors sooner or later would face correction dangers if the worth breaks under the decrease trendline.

XRP/USD worth chart that includes Rising Wedge breakout setup. Supply: TradingView.com

The potential destructive breakout dangers sending the XRP worth as little as the utmost distance between the Wedge’s decrease and higher trendline. That might put the cryptocurrency’s draw back goal underneath $0.65.

The views and opinions expressed listed below are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer includes danger, you need to conduct your individual analysis when making a call.