- Bitcoin price has found support at $25,174 and could kickstart a recovery rally after breaching the $27,300 hurdle.
- Ethereum price pullback could breach the $1,714 barrier along with bullish confirmation from RSI.
- Ripple price is poised for an uptrend, but traders sitting on the fence could send XRP below $0.5048.
Bitcoin (BTC) price is currently nurturing an uptrend, that could lead the rest of the crypto market from the pits of the recent crash. Ethereum (ETH) price and Ripple (XRP) prices are first in line already showing signs after BTC secured support.
Bitcoin price finds support
Bitcoin (BTC) price seems to have found support around the $25,174 level after a 16% downfall from the monthly high of $30,244 recorded on August 8. After a week-long consolidation, BTC could finally be ready to pull back after testing the demand zone marked by the $26,042 to $24,946 order block.
With the aforementioned order block holding as support, an increase in buying pressure above current levels could send Bitcoin price above the June 6 highs, marked by the $27,300 resistance level. Further north, the king of crypto could still extend above the $28,722 barricade, thereby reclaiming the ground lost during the August 17 crash.
In a highly bullish case, bulls could drive Bitcoin price to surpass the $30,000 psychological level, potentially tagging the $30,664 resistance level. Such a move would constitute a 15% ascent above current levels.
The Relative Strength Index (RSI) supports this thesis, pointing north to show rising momentum. If this trajectory continues, it will soon cross above the 30 level, confirming Welles Wilder's interpretation of an oversold asset.
Also, the histograms of the Awesome Oscillator (AO) are recording huge volumes of green bars, pointing to growing bullish momentum for BTC.
BTC/USDT 1-day chart
Conversely, there is the possibility that sellers could still recover their dominace in the market. For one, the RSI is still below 50 and, more specifically, 30, while the AO is still negative, meaning bears still have a firm grip on Bitcoin price.
If they prevail, the demand zone would fail as a support, becoming a bearish breaker and paving the way for a decline. In such a case, Bitcoin price could visit the $24,000 psychological level.
Ethereum price sees bullish confirmation from RSI
Ethereum (ETH) price is up a meager 3% in the last 24 hours, but this is not a mean achievement considering it has outperformed Bitcoin price. Like BTC, the largest altcoin by market capitalization has secured support, with ETH inflection point being the $1,627 level.
A pullback is underway for Ethereum price, confirmed by the RSI crossing above 30, with a pending buy signal as it crosses above the signal line (yellow band). Traders heeding this call could solidify the ongoing uptrend, setting the tone for ETH to foray above the $1,714 resistance level.
In a highly ambitious case, Ethereum price could plough back August 17 losses, setting it atop the $1,813 hurdle for a chance to confront the multi-month resistance level of $1,891 or higher, targeting the $1,941 roadblock in an attempt to breach the psychological $2,000.
ETH/USDT 1-day chart
However, owing to the strong correlation between ETH and BTC, the current uptrend for Ethereum price may not hold for long. If the above thesis fails, Ethereum price could correct south, falling below the crucial $1,627 level, and continue south. Such a move could see ETH revisit the psychological $1,500, levels last seen around February.
Ripple price at crossroads
Ripple (XRP) price is at crossroads, split between conforming to BTC's optimism after securing support and the negativity fueled by the legal tussle against the US SEC.
If bulls stop playing it safe, Ripple price could move north, breaking above the $0.5752 hurdle and potentially going as high as the early August highs at $0.6840. However, XRP must overcome the July 19 highs at $0.8193 for a confirmed uptrend. Such a move would constitute a 55% climb.
The RSI tipping north and the green bars of the AO histograms point to rising momentum. This adds credence to the bullish outlook.
Factors that may drive Ripple price north at this point include the actions of isolated traders, say Koreans for their own unconventional reasons, and a positive break in the legal debacle against the SEC.
XRP/USDT 1-day chart
On the downside, the negative AO and the RSI below 50 still tip the odds in favor of bears. Unless bulls steady their hands, Ripple price could descend below the immediate support at $0.5048.
Ripple price could also dip into the demand zone, and if this order block fails to hold as support, the price could slip through to test the $0.4191 support level. The move, which would have rendered the order block a bearish breaker, would denote a 20% nosedive.
SEC vs Ripple lawsuit FAQs
Is XRP a security?
It depends on the transaction, according to a court ruling released on July 14:
For institutional investors or over-the-counter sales, XRP is a security.
For retail investors who bought the token via programmatic sales on exchanges, on-demand liquidity services and other platforms, XRP is not a security.
How does the ruling affect Ripple in its legal battle against the SEC?
The United States Securities & Exchange Commission (SEC) accused Ripple and its executives of raising more than $1.3 billion through an unregistered asset offering of the XRP token.
While the judge ruled that programmatic sales aren’t considered securities, sales of XRP tokens to institutional investors are indeed investment contracts. In this last case, Ripple did breach the US securities law and will need to keep litigating over the around $729 million it received under written contracts.
What are the implications of the ruling for the overall crypto industry?
The ruling offers a partial win for both Ripple and the SEC, depending on what one looks at.
Ripple gets a big win over the fact that programmatic sales aren’t considered securities, and this could bode well for the broader crypto sector as most of the assets eyed by the SEC’s crackdown are handled by decentralized entities that sold their tokens mostly to retail investors via exchange platforms, experts say.
Still, the ruling doesn’t help much to answer the key question of what makes a digital asset a security, so it isn’t clear yet if this lawsuit will set precedent for other open cases that affect dozens of digital assets. Topics such as which is the right degree of decentralization to avoid the “security” label or where to draw the line between institutional and programmatic sales are likely to persist.
Is the SEC stance toward crypto assets likely to change after the ruling?
The SEC has stepped up its enforcement actions toward the blockchain and digital assets industry, filing charges against platforms such as Coinbase or Binance for allegedly violating the US Securities law. The SEC claims that the majority of crypto assets are securities and thus subject to strict regulation.
While defendants can use parts of Ripple’s ruling in their favor, the SEC can also find reasons in it to keep its current strategy of regulation by enforcement.
Can the court ruling be overturned?
The court decision is a partial summary judgment. The ruling can be appealed once a final judgment is issued or if the judge allows it before then. The case is in a pretrial phase, in which both Ripple and the SEC still have the chance to settle.
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