With a broad market rally in crypto markets, the market leaders such as Bitcoin, Ethereum, Ripple (XRP), and Cardano (ADA) also have reaped huge benefits. However, there could be more to this rally because of the SEC vs. Ripple case's impending judgment.
Crypto markets are witnessing a great rally in prices. Bitcoin crosses and sustains above $25,000, and Ethereum is nearly $1,800. However, Ripple has some mixed news about it. The cryptocurrency has crossed a $20 billion market cap amid an ongoing case between the SEC and Ripple Labs.
However, time and again XRP was unable to sustain at higher levels because of a sideways market. Only a broad market rally and a win could help the price sustain above $0.5.
In the last seven days, where Bitcoin has rallied more than 27%, Ripple has gained a meager 6%. This slow growth can be attributed to the uncertainty created by the SEC vs. Ripple case. In the second week of March, Judge Analisa Torres of the US District Court of the Southern District of New York issued an initial ruling. This initial ruling was based completely on merits and was a part of the summary judgment. It is to be noted that both parties have already agreed to a summary judgment.
According to a pro-XRP lawyer, Jeremy Hogan, Judge Torres has already decided in the court's 57-page ruling.
Positive anticipation has resulted in good gains for XRP, which now stands just below a crucial resistance of $0.40. The XRP failed to break this resistance multiple times on Feb 15, Feb 20, Mar 08, and Mar 18. We are now using technical analysis to see if the indicators can provide any insights on future price movements.
Initial analysis shows that there is a critical resistance near $0.40, which the cryptocurrency failed to break four times in the last two months.
However, since March 15, the cryptocurrency has been on an uptrend. If this trend continues with good momentum, the resistance might break around March 24.
Technical analysis also suggests a strong price movement in the near future because:
However, the low volume is a concern. Volume has been very less since the beginning of the uptrend (March 15). This indicates that if a market reversal takes place for XRP, the fall in price will be quicker. Therefore it becomes essential to put a stop loss.
Sentiment Analysis from Data Pool shows that the current sentiment has been positive since March 14.
On Investing.com, 68% of users are bullish on positive price movements.
For the above trade, the price can move toward $0.40 and then $0.43, which will be our two targets. Due to the risk of a sudden price reversal, the stoploss have to be kept close at $0.36, below which one must exit the trade.
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