- XRP price sketching a bullish inverse head-and-shoulders pattern on the intra-day charts.
- All key moving averages remain in uptrends, supporting rebound continuity.
- Ripple investor endorses rumors of Ripple going public after SEC case resolution.
XRP price has been a wild ride in April, beginning with a rally of nearly 250%, followed by a 50% crash, and now a 60% rebound. Chart technicals have been tossed around like a salad, but Ripple now appears to calmly consolidate the price compression, upgrading the long-term bullish outlook.
XRP price volatility spotlights the hazards of a cryptocurrency wrapped in legal uncertainty
During an earnings presentation call, Yoshitaka Kitao, CEO of the Japanese financial juggernaut SBI Group, rekindled the rumors of Ripple executives contemplating an initial public offering (IPO) once the Securities and Exchange Commission (SEC) lawsuit is settled.
Last year Ripple executive Brad Garlinghouse hinted at an IPO.
In the next 12 months, you’ll see IPOs in the crypto/blockchain space. We’re not going to be the first and we’re not going to be the last, but I expect us to be on the leading side. It’s a natural evolution for our company.
An IPO would be a big boost to SBI Groups’ financial fortunes, considering they are the largest outside shareholder of Ripple. Kitao predicted such an IPO would trigger interest in other SBI Group investments, such as blockchain consortium R3, to go public in the future.
For now, under the stress of the SEC case, Ripple executives are focused on securing legal victories and increasing the adoption of the cross-border remittances token outside of the United States.
Last week, Ripple closed down 26.41% for the largest weekly loss since the SEC case was first made public. The overall loss from the April high was 55%.
XRP price responded impressively with a 30% gain on April 26, shattered the declining trend line from the April high, and achieved a 60% in five days. Over the last two days, Ripple has shifted into a process of consolidation that slowly reveals an inverse head-and-shoulders pattern.
A breakout from the bottoming pattern would strike resistance at the 61.8% Fibonacci retracement of the April decline and the 78.6% retracement at $1.73. However, the psychologically important $2.00 and the 61.8% retracement of the 2018-2020 bear market at $2.08 are what seizes the attention of bullish Ripple speculators.
XRP/USD 12-hour chart
The bullish outlook could be complicated by a restart of the collective decline in the cryptocurrency complex or a negative development in the SEC lawsuit. Some support will manifest around the 50 twelve-hour moving average at $1.30, but the legitimate support does not arrive until $1.00.
An incremental rally underpins the bullish outlook, but there is no room for underestimating the volatility of Ripple. Staging entries with discipline and elevating risk management to the forefront is the right investment program for the digital token.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Is Uniswap the best-performing DEX exchange?
Uniswap daily active users are the highest than other DEX exchanges. Token Terminal data show UNI has collected $399 million in fees in the past three months. UNI’s 180-day trading volume is the highest in the DEX sector.
These crypto tokens have the best chance of recovery: XRP, Solana, Ethereum, Bitcoin, Chainlink
Crypto intelligence tracker Santiment tracks the narrative among traders to identify which assets have the best chance of recovery. Typically, the assets that crypto traders have the most negative sentiment towards, have the best chance of recovery.
BTC vulnerable despite surge in stablecoin market capitalization
Bitcoin price closed below the $62,000 support on Wednesday, showing signs of weakness. CryptoQuant report shows how rising stablecoin market capitalization could be a positive sign for Bitcoin and other cryptocurrencies.
Shiba Inu could dip 7% as SHIB whales reduce their holdings
Shiba Inu, the second largest meme coin in the crypto ecosystem, edges slightly higher and trades at $0.00001710 at the time of writing on Thursday after a three-day decline. On-chain and technical indicators signal that further correction is likely in the meme coin.
Bitcoin: Is BTC sell-off over?
Bitcoin price declined over 6% this week until Friday as the escalation of the conflict between Iran and Israel added fuel to this sell-off. The decline was also supported by falling institutional demand for ETFs. BTC bulls seem to be holding strong at a critical support level.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.