In the last 48 hours, XRP has gained nearly 15% in growth. The price rise can be seen as associated with the Ripple Labs vs. SEC case and its possible classification as a commodity instead of a security. Overall the cryptocurrency has surged to six month high of %0.53, which it last crossed in Oct 9, 2022.
In the latest turn of events, there is ripe speculation that XRP might be classified as a commodity. This move, if it materializes, would send bullish signals across the cryptocurrency economy.
A lawsuit was filed by U.S. Commodity Futures Trading Commission (CFTC) against Binance. If US CFTC wins the case or even if it goes to trial, it might set precedence for cryptocurrencies being treated as commodities. Several law experts feel that CFTC should be the one regulating cryptocurrencies.
The possibilities are high for this as it is still unclear how US Securities Exchange Commission would prove that XRP clears the US Supreme Court-mandated Howey Test. The case is being heard in US District Court for the Southern District of New York.
Pro-Ripple lawyer John Deaton posted a risk-reward analysis on Twitter, which opines that if Ripple Labs loses the case, it may go to higher courts and obtain a status quo. If it wins the case, this will spiral the cryptocurrency prices upward.
Based on the above trend, we have done a price analysis to check if the trend is sustainable and what trading opportunities exist.
XRP is in an extremely nice spot, with all indicators signaling further price increases.
Overall the charts are signaling further growth in prices.
Let us look at a few more signals before we make the decision to buy.
On-Chain transactions show a spike around March 19, just 10 days ago. However, cryptocurrency just rose by 5%, which shows that the transaction has not yet impacted the market. These large transactions seem to whale accumulations. Further, there has been a spike in volumes that were not seen since the accumulation phase in Sep-Nov 2022.
Further, on March 19, there were 0.88 Million active addresses that whales might have activated.
Based on Technical and Fundamental analysis, the XRP price may rise further.
Since it has crossed a resistance near $0.55, which was last tested in Nov 2022, it can now cross $0.86 if the decision of the SEC vs XRP case turns in its favor.
The new target is XRP's last resistance of $0.86, which it touched in May 2022 during the LUNA Collapse. However, it is essential to trade cautiously as unfavorable news can cause prices to go downwards.
Therefore, we will keep a stop loss at $0.46, its last touched support.
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