Share:
  • 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

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.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Charles Hoskinson and XRP community in loggerheads again, debate on Ethereum’s free pass resurfaces

Charles Hoskinson and XRP community in loggerheads again, debate on Ethereum’s free pass resurfaces

Charles Hoskinson, the founder of Cardano, engaged in a debate with the XRP community over the rumors of ConsenSys founder, Joseph Lubin, bribing the US financial regulator.

More Cardano News

Bitcoin Weekly Forecast: Analyzing potential $30k corrections ahead of BTC ETF approval

Bitcoin Weekly Forecast: Analyzing potential $30k corrections ahead of BTC ETF approval

Bitcoin (BTC) price has slowed down its 2023 bull rally as it approaches the $37,000 level. After three weeks of consolidating around this level, BTC shows no directional bias whatsoever.

More Bitcoin News

Solana likely to extend gains as DeFi airdrop season could boost user base

Solana likely to extend gains as DeFi airdrop season could boost user base

Solana ecosystem is set to experience a surge in activity from decentralized finance (DeFi) projects that offer users airdrops in the following months, according to a report from crypto market intelligence company Messari. 

More Solana News

LUNC ranks among trending tokens alongside Dollar pegged stablecoin USTC, eyes recovery

LUNC ranks among trending tokens alongside Dollar pegged stablecoin USTC, eyes recovery

Terra Classic USD and Terra Luna Classic tokens are trending among market participants after overnight price gains. USTC rallied to $0.078 local top after its 2022 collapse, garnering hope among traders. 

More Cryptocurrencies News

Analyzing potential $30k corrections ahead of BTC ETF approval

Analyzing potential $30k corrections ahead of BTC ETF approval

Bitcoin has slowed down its 2023 bull rally as it approaches the $37,000 level. After three weeks of consolidating around this level, BTC shows no directional bias whatsoever. Some investors speculate this could be an upward-sloping accumulation that leads to a $40,000 rally.

Read full analysis

BTC

ETH

XRP