The price of XRP was teetering between gains and losses on September 19, despite hopes that Ripple would end up winning its long legal battle against the United States Securities and Exchange Commission (SEC).
Ripple and the SEC both agreed to expedite the lawsuit on Friday to get an answer on whether $XRP is a security or not.
From the updates of the case, it sounds like it’s in the favor of @Ripple pic.twitter.com/SAyl4VLxdM
— Jeff Sekinger (@JeffSekinger) September 19, 2022
Ripple and the SEC agreed to expedite the lawsuit on Friday to get an answer on whether or not $XRP is a security.
From the updates on the case, it seems that it is in favor of @Ripple
The Fed spoils the SEC euphoria against Ripple
The XRP/USD pair fell more than 1% to $0.35 as it formed sharp bullish and bearish wicks on its daily candle on Sept. 19. In other words, his intraday performance hinted at a growing trend conflict among traders.
Indecision could be due to XRP’s exposure to catalysts other than the SEC lawsuit against Ripple. Namely, the possibility that the Federal Reserve will raise its benchmark interest rates by another 75 or 100 basis points at its policy meeting on September 20.
As Cointelegraph reported, Fears of an aggressive rate hike have pushed the cryptocurrency market lower throughout the year, including Bitcoin (BTC) and Ether (ETH). XRP is also not immune, given the token’s consistent positive correlation with Bitcoin since October 2021.
For example, the daily correlation coefficient of XRP with Bitcoin on September 19 was 0.47. A reading of 1 means that the two assets are moving in unison.
XRP Price Risks Dropping Below $0.25 in Q4
Independent market analyst Cheds noted that XRP has been fluctuating within a rectangular range since June, adding that “there is nothing to get excited about” at present.
The range is defined by $0.38-$0.40 acting as resistance and $0.28-$0.30 acting as support. The price of XRP fell after testing resistance and as of September 19, it was heading towards the support zone, as shown below.
Interestingly, a move into rectangular range support could also trigger a classic bearish reversal pattern called a head and shoulders, defined by three consecutive peaks forming above a common support level, with the central peak (head) higher than the lower ones. two others (left and right shoulders).
A head and shoulders pattern resolves after price breaks below its support line and falls as far as the maximum distance between the mid-peak and support. Applying this theory to the daily chart of XRP presents $0.242 as a downside target.
In other words, XRP price could lose another 30% by the end of this year, mainly driven by macro catalysts.
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