Key Insights
- XRP has rallied up to 3.02% at the time of writing.
- Bitcoin finally found the strength to break above the $20,300 resistance.
- Ethereum broke above the $1,400 resistance and now sits around $1,500.
- October finally lived up to its “Uptober” nickname.
The entire crypto market, including XRP, came alive, with bitcoin and many top altcoins experiencing explosive price gains in the last 24 hours.
Bitcoin finally found the strength to break above the $20,300 resistance and rose to the $20,700 zone. Ethereum broke above the $1,400 resistance and now sits around $1,500 at the time of writing.
Other altcoins in the market, including Cardano, Polygon, Polkadot, and Ripple, took shares out of the crypto price explosion and rallied upwards.
Ripple Coin (XRP), in particular, has rallied up to 3.02% at the time of writing, from a low of $0.42 to $0.466.
However, while other cryptocurrencies made double-digit gains, Ripple Coin is just getting started.
Ripple Coin (XRP) To $0.55 and Beyond
After a price explosion from the cryptocurrency’s $0.32 lows due to the heat of the legal battle between Ripple Labs and the US Securities and Exchange Commission (SEC), XRP managed to hit a $0.55 high in late September.
However, after nearly a month of consolidation, XRP’s price action has formed a symmetric triangle. The cryptocurrency price continues to trade between the $0.5 and $0.4 zones, in a range that continues to tighten as the bulls and bears gather their strength.
Symmetric triangles are neither bullish nor bearish because the price has equal chances of moving in either direction.
The question, at this point, is, “where is XRP headed?”
To answer this question, the Fibonacci retracement tool may come in handy.
The Fibonacci retracement tool paints a clearer picture of the XRP chart.
As illustrated above, the price action of XRP has only one resistance level to beat for an explosive move to the upside.
This level is the $0.4817 resistance (yellow band), as illustrated by the blue arrow on the right side of the image above.
XRP Price Action
A close look at the chart shows that XRP bounced off the $0.4199 support last week, broke through the $0.45 resistance, and is now trying to reach the $0.48 mark.
The behavior of XRP in the charts depends entirely on how hard the bulls can push.
A price movement from where XRP is to the $0.55 zone would be a ~20% move to the upside, and also confirm a (potential) head and shoulders pattern on the price action of XRP.
Ripple v/s SEC Lawsuit Updates
Recall that in 2020, the US Securities and Exchange Commission sued Ripple labs for the alleged sale of XRP as an “unregistered security” via an ICO (initial coin offering).
According to the SEC, the cryptocurrency XRP is a security, and its sales violate US securities laws.
Just last week, Ripple Labs won the fight against the SEC for the “Hinman Documents”.
The Hinman documents are letters, transcripts, and emails containing information that may prove that cryptocurrencies like Ethereum and Bitcoin are not securities because their networks are sufficiently decentralized.
General counsel to Ripple Labs, Stuart Alderoty, has mentioned that these documents Ripple Labs has managed to obtain may be useful in proving that XRP is not a security and should not have been treated as such by the SEC.
Because if decentralization is one of the factors that make Ethereum and Bitcoin free from being classified as securities, then XRP, by extension, is not a security.
According to an interview with Deborah McCrimmon, the deputy general counsel to Ripple, the SEC is starting to reach far beyond the authority granted to them by congress and is trying to enforce crypto regulation in all the wrong ways.
McCrimmon argues that the SEC’s behavior has been “terrible” and calls on them to release clear and concise rules instead of suing businesses.
Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.
