Sheldon McIntyre, CMT
FXStreet
- XRP price has rallied 60% over the last two weeks.
- SEC grants Ripple’s motion to temporarily seal four documents.
- First Fibonacci retracement level of the 2018-2020 bear market in play.
XRP price has been a wildcard ever since the Securities and Exchange Commission (SEC) filed a lawsuit against two Ripple executives in late 2020. The price bias has been higher after the December crash, and volatility has been pronounced, but the weekly close above $0.60 last week was a statement to the legal bears, and it opened the door to the explosive gains so far this week.
Ripple defense making incremental progess
On March 31, in another step forward for defense, a New York judge granted Ripple’s motion to temporarily seal four documents. The judge did instruct Ripple and the SEC to come together on the redactions by April 2. However, the defense lawyers did convince the judge to permit redactions in two email correspondences.
An agreement over the other two documents has not been reached, according to Ripple’s lawyer, Andrew Ceresney. Meanwhile, the SEC does not want any email exchange that contains personal financial information to be excluded. Ripple lawyers responded by saying they are not judicial documents and not for public access.
“All four documents are ‘discovery materials filed with the court in connection with the discovery-related disputes,’ and therefore not judicial documents and not entitled to a presumption of public access.”
Nonetheless, the lawsuit is not over, and the headlines will continue to offer the occasional jolt to price. Still, it appears that XRP traders and investors are beginning to see the light at the end of the tunnel.
XRP price needs a weekly close above $0.80 to leave legal worries behind
Ripple is currently up 38% on the day, shattering the resistance at $0.80 and tagging the 0.236 Fibonacci retracement level of the 2018-2020 bear market at $0.863. Further strength would target the psychologically important $1.00, followed by the 0.382 retracement level at $1.33.
XRP/USD weekly chart
A reversal in legal fortunes or deterioration in technicals would hasten a U-turn back into the critical $0.60 - $0.80 price range and potentially threaten the rising trendline from December 2020. If the trend line melts away, it will lead to a collapse in Ripple to the 0.618 retracement of the rally since the December 2020 low at $0.454.
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.
Latest Crypto News & Analysis
Editors’ Picks
Cardano partners with Chainlink to drive smart contract development for DeFi applications
Cardano recently announced a strategic partnership with decentralized blockchain oracle network Chainlink. The third-generation blockchain is preparing to build smart contracts for decentralized finance (DeFi) applications.
Huobi to stop servicing Chinese users as China vows strict crackdown on crypto
A few months after the cryptocurrency mining ban in China, the country issued another update last week, reiterating that digital assets are banned and crypto exchanges are prohibited. Shortly after the announcement was revealed, Bitcoin and altcoins plunged.
Ethereum bears contemplate a drop to $2450
ETH price is building up downside pressure while clinging to the 200-SMA support. RSI remains flat below the midline, keeping the sellers cheerful. A drop towards $2450 remains in the offing if the 200-SMA caves in.
Polkadot price at make-or-break point
Polkadot price spots a potential symmetric triangle pattern on the 1D chart. RSI stands neutral at 50.00, suggesting a lack of clear directional bias. 21-DMA offers immediate resistance.
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.