• XRP price confidence weakens slightly as breakout from bullish base falters. 
  • XRP/BTC pair has gained over 300% in the last eight weeks.
  • Ongoing SEC case and the documentation production battles cast a wide shadow.

XRP price has gained 100% since the April 22 low while building a solid foundation for further gains in the coming weeks. Consolidation may extend for a couple of days. Still, the technicals point to the continued relative strength and solid absolute returns. 

Judge warns SEC to stop stalling   

In a new inning of the documentation production battle between the Securities and Exchange Commission (SEC) and Ripple, judge Sarah Netburn has restated that the SEC must produce all documents related to Bitcoin, Ether and XRP. 

The regulatory agency has repeatedly stated that it does not possess any material related to the major cryptocurrencies. Still, if it is revealed that the SEC did discuss XRP with the two largest cryptocurrencies, it would further establish Ripple’s argument. More specifically, the most important materials are related to the SEC’s clarification of Bitcoin and Ethereum as not being securities. The agency regards XRP as a security.

The enforcement action of the SEC against Ripple has to be the most important lawsuit in the cryptocurrency space. However, unlike lawsuits involving other crypto-related enterprises or assets, Ripple has the firepower to battle the case to the Supreme Court if necessary.

XRP price strikes bullish posture in the legal anxiety

Ripple has provided three opportunities to engage bullish speculators, the hammer candlestick pattern on April 23, the inverse head-and-shoulders breakout on April 30 and yesterday’s emergence from a bullish cup-with-handle base. In all, XRP price has assembled a substantial foundation to build a long-duration advance.

Yesterday, XRP price broke out from a bullish cup-with-handle base, allowing new speculators to capitalize on a timely entry price. Unfortunately, the breakout mildly pulled back into the base, forcing speculators to practice patience as XRP price clarifies intentions.

The reversal back into the base triggered a longstanding trading rule: the pullback-plus-four. It specifically states that speculators need to give the digital asset four days to trade above the breakout high. A failure to do so augments the probability that XRP price will decline or evolve into a more complex pattern. 

At the moment of writing, the bullish thesis remains active, with the first notable resistance arriving at the convergence of the April high at $1.96, the psychologically important $2.00 and the 61.8% Fibonacci retracement of the 2018-2020 bear market at $2.08.

The measured move target of the cup-with-handle base is $3.16, generating a gain of 90% from the handle high of $1.66. A rally of this significance would position XRP price to target at least the 2018 all-time high at $3.30.

XRP/USD 4-hour chart

XRP/USD 4-hour chart

Speculators should turn defensive if XRP price fails to rally above the breakout high of $1.76 within four days, starting with today. A decline below the handle low of $1.31 immediately places Ripple in a vulnerable technical position, signifying a complex bottoming process or even a plunge to the April low at $0.874.

XRP price has withstood the legal gyrations to be one of the top-performing cryptocurrencies since the April low, displaying noteworthy speculator demand. Similarly, the explosion higher for the XRP/BTC pair affirms that the returns have been strong on an absolute basis and a relative basis.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Chiliz price excitement fades as CHZ hodlers show zero conviction

Chiliz price climbed just over 70% from the June 9 low to the May 11 high in the run-up to the kick-off of the European Cup, one of the premier soccer events in the world. The notable rally did capture the attention of the cryptocurrency markets and the CHZ faithful, but it has since stumbled lower.

More Chiliz news

XLM Price Forecast: Stellar may be on the brink of a 50% collapse

XLM price has been propped up by the symmetrical triangle’s lower trend line and 61.8% Fibonacci retracement level of the March 2020-May 2021 rally. Volume runs well below the 50-day average, revealing no accumulation or distribution by investors.

More Stellar news

Litecoin price resistance at $186 dictates the future of an LTC rebound

Litecoin price action has been dull since the May 23 low as the area around the 200-day SMA has been a tremendous influence. Unless LTC overcomes the significant resistance constructed by ...

More Litecoin news

Chainlink Price Prediction: LINK accelerates higher, but $27 is imposing resistance

Chainlink price has renewed its correlation with Bitcoin with a resounding 27% bounce, but volume has languished below the 50-day average, and LINK is nearing a fundamentally important price level.

More ChainLink news


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast