Ripple Price Analysis: XRP Prepares For A Breakout, Ripple vs SEC Update
Ripple (XRP) has been one of the most resilient cryptocurrencies over the last one year. Despite the XRP vs. SEC case which has dragged on since late 2020, the Ripple price has remained attractive even rising to it all-time highs in April.
It is believed that Ripple Labs will win the case brought by the U.S. Securities & Exchange Commission (SEC) which asserts that XRP is an investment contract and thus a security. And when this happens, there will be no stopping Ripple.
Ripple vs SEC Update: The SEC Could Go After Ethereum
The SEC recently changed its 2018 decision declaring that cryptos like Bitcoin and Ethereum were never declared as non-securities. This suggests that the regulator may pursue an investigation into Ethereum once the SEC vs. XRP case is finalised. However, SEC is yet to clarify in the ongoing Ripple vs. SEC lawsuit whether on its stance whether Bitcoin and Ethereum are securities or non-securities.
Despite this, proponents of in the international payments giant believe that Ripple is edging closer to a win against SEC in the lawsuit. Cryptocurrency analysts and investors such as Kevin Cage remain bullish on XRP price noting that XRP remains among the top 10 cryptos despite the legal battle with SEC and a series of delisting’s from exchanges.
I'm tired of retweeting $XRP de-listing postsCan't wait to see all the re-listings somedayAny other crypto asset would probably never survive this type of scrutiny.$XRP the🐐 Still in Top 10 After One Year of Battling the Final Boss (SEC).Getting closer.— Kevin Cage (@Kevin_Cage_) December 13, 2021Related articleDid Tether’s Latest Lawsuit in New York Trigger Recent Crypto Market Crash?
Ripple price ready for a breakout
XRP price is trading in the green at $0.7923 and has recorded a series of lower highs and lower lows since November 07. This price action has created a descending parallel channel on the daily chart.
Since tanking below the $1 psychological level on November 26, there have been several attempt to reclaim this crucial level. Rejection at the upper boundary of the channel and the selling pressure following the December 03 crypto market flash crash pushed the Ripple price further below this level.
At the time of writing, Ripple is fighting overhead pressure from the $0.80 psychological level. A closure above this level could see XRP price rise above the $0.8300 resistance level embraced by the upper boundary of the descending channel confirming a bullish breakout.
XRP/USD Daily Chart
This optimistic outlook is accentuated by the retraction of the Relative strength index (RSI) indicator away from the oversold region pointing to a trend reversal.
Looking Over The Fence
However, things may go awry for Ripple price if it slides deeper below the immediate resistance at $0.7490 embraced by the middle boundary of the governing chart pattern. If this happens, the price of the cross-border remittances token my drop to tag the lower boundary of the channel at $0.6786. This will be a approximately 12% lower than the current price and the target price of the governing chart pattern.
The position of the MACD below the zero line in the negative region accentuates this bearish outlook.Source