XRP has a good chance of hitting $ 1.50 in the fourth quarter of 2021 after pulling a bullish crossover between the 20- and 50-day exponential moving averages (EMAs).
The so-called Golden Cross has often appeared in XRP charts throughout history. Its last appearance was on August 10th, followed by a rally about 80% later, with the XRP seasonally climbing at $ 1.43 before falling back down.
Similarly, XRP’s closing price of the 20-day EMA fell above the 50-day EMA on February 4th, followed by a price rally of around 400%. In the process, XRP hit an annual high of $ 1.98, further showing that the recent Golden Cross can trigger a similar bullish reaction from traders.
Much of the evidence of upward movement comes from the rising wedge pattern. The upper and lower trendlines of the ascending channel pattern have acted as resistance and support to XRP price action lately. The cryptocurrency’s sustained uptrend also followed a strong rebound from Wedge’s lower trendline, as shown in the graph above.
Hence, the potential for XRP to extend its rally towards the upper wedge trendline looks high. That roughly paints a bullish target of $ 1.50 for XRP.
Ripple vs. SEC
The most recent purchase in the XRP market also comes after a recent update to the SEC and Ripple lawsuits.
Previously, the US Securities and Exchange Commission filed a lawsuit against Ripple Labs and two of its executives in December 2020, alleging they raised more than $ 1.3 billion through an unregistered securities offering over the XRP token.
In response, Ripple Labs sought to prove that XRP is a utility token – not a security – based on a speech by former SEC director William Hinman in which he stated that ether, a token blockchain like XRP, is not a security good .
The current SEC regime regards Hinman’s opinion as personal. But according to recent findings, the US securities regulator may have lied.
Ripple’s legal team recently filed court minutes showing that the SEC directed its employees to analyze digital currencies according to the framework provided by Hinman. It can be shown that Hinman’s speech was not a mere personal opinion, but an official instruction.
Related: Judge Denies XRP Hodlers Offer to Join the SEC against Ripple as a defendant
Judge Netburn ruled Ripple Labs’ favor and added the evidence to their on-camera review.
#XRPCommunity #SECGov V. #Wave #XRP SOLUTION: A third of Judge Netburn ordered the SEC to produce two documents related to SEC meetings with law firms and email chains related to conversations with third parties on camera, received instructions from the SEC pic.twitter.com/zbjDi7HKYJ
– James K. Filan (@FilanLaw) October 8, 2021
The verdict came on October 8th, followed by a 17% increase in XRP price.
bearish reversal pattern also in pl
XRP’s rising wedge is a bearish reversal pattern. As a result, the future returns of the cryptocurrency are subject to correction risk if the price falls below the lower trend line.
The potential negative breakout risks the XRP price as low as the maximum distance between the lower and upper trend lines of the wedge. This would put the downside target of the cryptocurrency below USD 0.65.