- XRP, linked with Ripple Labs, trades steadily at $0.5 support.
- The Ripple-SEC lawsuit resolution and technical analysis suggest a possible move towards $1 for XRP.
XRP, the cryptocurrency closely associated with Ripple Labs Inc, has been maintaining a steady support level at $0.5, creating anticipation among investors for a potential return to the $1 mark as the Ripple-SEC lawsuit nears its conclusion.
A comprehensive analysis of XRP’s daily chart on TradingView reveals a recent price downturn after a successful pullback to the broken 100 and 200-day moving averages. Currently trading at $0.5317, XRP faces a decisive support region between the static support level of $0.5 and the lower boundary of the multi-month triangle. This support range, if strongly defended, could prevent further downward movement. However, an impending breakout is on the horizon as the price approaches the narrow range of the triangle.
A successful break below this critical triangle could trigger a significant downward trend, causing fear and uncertainty in the market. Conversely, a breakout above the upper boundary would signal a renewed bullish trend, with a target at the pivotal resistance of $0.7.
Zooming into the 4-hour chart reveals a dominant impulsive downtrend, indicating the sellers’ control. However, the price has now reached a crucial support region defined by the multi-month ascending trendline and the static support range of $0.5. The historical strength of the trendline as solid support suggests increased demand, potentially leading to a reversal and a potential mid-term bullish trend.
XRP Price Chart. Source: TradingView
However, a sudden breach of this critical support range could result in a significant decline, targeting the next essential support level at $0.48. In such a scenario, the $0.5 support region would transform into a formidable barrier, leading to a consolidation phase between the $0.48 support and the mentioned resistance at $0.5.
One of the most significant challenges for Ripple and XRP has been the SEC lawsuit initiated in December 2020. The SEC alleged that XRP is a security and that Ripple conducted an unregistered securities offering by selling XRP. This legal battle had a severe impact on XRP’s price, causing a sharp decline. However, in July last year, US District Judge Analisa Tores ruled in favor of Ripple, stating that XRP sales on exchanges do not constitute securities offerings.
Despite these challenges, Ripple and XRP have demonstrated remarkable resilience. The company has continued to establish partnerships with financial institutions and introduced its Ripple Payments solution, aiming to revolutionize cross-border payments. Moreover, the recent settlement between Ripple and the SEC has brought clarity to the regulatory landscape surrounding XRP.
Several positive developments suggest that XRP may be on the path to recovery. Speculations abound regarding the potential launch of an XRP ETF, supported by Ripple’s recruitment of key positions. However, some experts suggest that developing a futures ETF before a crypto spot ETF, especially for XRP, could pave the way more smoothly while enhancing the market’s legitimacy and stability.
In conclusion, XRP appears to be gearing up for a potential retest of the $1 price level in the long term, driven by both technical factors and positive developments in the Ripple-SEC lawsuit saga.
