XRP has a very good chance of hitting $ 1.50 in the fourth quarter after forming a bullish crossover between the 20- and 50-day exponential moving averages (EMAs).
The Golden Cross has appeared on XRP charts many times throughout history. The most recent event was on August 10th, followed by a rally of around 80%, with XRP peaking at $ 1.43 locally before falling back again.
Previously, on February 4, XRP closed above the 50-day EMA with the 20-day EMA exceeding the 50-day EMA, which coincided with a rally around 400% later and the token hit an annual high of $ 1.98, showing that recent Golden Cross could spark a similar bullish reaction from traders.
XRP daily price chart setting up the Golden Cross | Source: TradingView
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 sustained upward movement of XRP also follows a strong rebound from the lower trendline of the wedge, as shown in the graph above.
Hence, the potential for XRP to extend the rebound towards the upper trendline of the wedge looks high and pulls a bullish target of $ 1.50.
The legal battle between Ripple vs. SEK
XRP’s most recent bull run comes after an update from the SEC vs. ripple.
The United States Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs and two of its executives in December 2020, alleging it raised more than $ 1.3 billion through an unregistered securities offering in XRP.
In response, Ripple Labs tried to prove that XRP is a utility token – not a security – based on speech by former SEC chairman William Hinman, in which he stated that ether, a blockchain token like XRP, is not a security.
The current SEC apparatus considers Hinman’s opinion 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.
Judge Netburn ruled in Ripple Labs’ favor and added the evidence to their “In Camera – in private” review.
#XRPCommunity #SECGov V. #Wave #XRP BREAKING: 1/3 Judge Netburn orders the SEC to submit for review the two documents relating to the SEC’s meetings with law firms and the chain email discussions with a third party advised by the SEC pic.twitter.com/zbjDi7HKYJ
– James K. Filan 🇺🇸🇮🇪 (@FilanLaw) October 8, 2021
Judge Netburn ordered the SEC to produce in camera two documents related to SEC meetings with law firms and an email chain related to discussions with third parties receiving instructions from the SEC.
The verdict came on October 8th, followed by a 17% increase in the price of XRP.
bearish reversal pattern
The rising wedge is a bearish reversal pattern. Therefore, XRP futures profits are subject to correction risk if the price drops below the lower trend line.
XRP Price Chart Establishes Rising Wedge Breakout | Source: TradingView
A potential bearish breakout risks XRP price sliding down the maximum distance between the wedge’s upper and lower trend lines. There, XRP can drop to $ 0.65.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Cointelegraph