Ripple price could kickstart 140% rally to $1.23 after SEC's “surrender”
- Ripple price is in an accumulation zone for long-term investors.
- XRP buyers could be in for a treat if the inverse head-and-shoulders pattern plays out.
- A successful completion and breakout from the said technical formation could trigger a 60% rally to $1.234.
- Invalidation of the bullish thesis will occur on the breakdown of the $0.413 support level.
Ripple (XRP) price continues to surge following the major market trend, which has suddenly flipped bullish. XRP, in particular, has a better reason to rally after the US SEC agreed to drop the suit against Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen.
Read more: Breaking: XRP price jumps almost 10% as SEC drops lawsuit against Ripple executives
Ripple FAQs
What is Ripple?
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
What is XRP?
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
What is XRPL?
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
What blockchain technology does XRP use?
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
SEC calls it quits
On July 13, the US Securities and Exchange Commission scored a major defeat against Ripple in its lawsuit. This major development caused a massive rally in XRP price that pushed it up by nearly 100% to $0.938.
While this lawsuit’s decision was a historic win not just for the Ripple and XRP community but for the cryptocurrency industry as a whole. But as of October 19, the commission has decided to end the cases against Ripple’s CEO, Brad Garlinghouse and Executive Chairman Chris Larsen.
While these are two victories in Ripple’s corner, the SEC is still likely to pursue the main SEC vs. Ripple lawsuit, which claims XRP sales to institutions were unauthorized distribution of securities. But the recent filing states that,
The SEC and Ripple intend to meet and confer on a potential briefing schedule with respect to the pending issue in the case – what remedies are proper against Ripple for its Section 5 violations with respect to its Institutional Sales of XRP.”
If this meet does go in favor of Ripple, it would be a major fundamental boost to XRP and could even catalyze a rally.
Read more: XRP price likely to rally as investors grow their holdings, Ripple CTO challenges US SEC about Ethereum
Ripple price could blast higher
With the fundamental aspects in mind, the Ripple (XRP) price currently stands at $0.512. Judging from the past, XRP price has always formed an inverse head-and-shoulder pattern before a massive volatile move to the upside.
In its 10-year history, ALL major, mind-melting $XRP moves had this pattern pop up before it.
— MAXPAIN (@Mangyek0) August 16, 2023
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Now, a similar setup can be seen on the 3-day chart.#XRPArmy #XRPCommunity https://t.co/ATsc5UjXag pic.twitter.com/KWOfXLwDb9
Read more: XRP Price Prediction: SEC vs. Ripple lawsuit’s 100% rally could be just the start
Currently, on the weekly time frame, Ripple price is once again setting up a potential inverse head-and-shoulders pattern. This technical formation has three distinctive swing lows, with the central one deeper than the other two, known as the head. The ones on either side of the head are termed shoulders. Connecting the peaks between the valleys using a trend line shows a declining resistance level, in this case, known as the neckline.
A decisive breakout or a flip of the neckline into a support floor will confirm the start of an uptrend. In such a case, the target is obtained by measuring the distance between the right shoulder’s peak and the head’s lowest point. Adding this value to the breakout point reveals the target.
For Ripple price, however, things are different. The right shoulder is yet to form, hence, the inverse head-and-shoulders setup is not yet confirmed. For confirmation, the XRP price needs to rally nearly 50% from the current position and retest the neckline. Assuming the remittance token ends its consolidation and kickstarts
After the 50%, if Ripple price produces a decisive breakout above the neckline, the measurement rule suggests that a 60% rally to $1.234 is on the cards.
In total, this move would constitute a 140% rally from the current position of $0.513.
XRP/USDT 1-week chart
On the other hand, if the ongoing Ripple price consolidation breaks below the $0.413 support level, it would invalidate the inverse head-and-shoulders setup. This move will distort the technical formation’s measurements as it could easily trigger a correction in XRP price to the $0.333 level, which is close to the head’s lowest point.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
