Ripple’s XRP token took a break from its prevailing downtrend as its price rallied from $0.68 to $0.72 in the last three days.
Ripple scores a victory against the SEC
Traders bought back XRP after a US court denied the request of the Commission on Securities and Exchange (SEC) of the United States to shield internal documents related to the speech of June 2018 pronounced by its former director William Hinman in who said that Bitcoin (BTC) and Ether (ETH) are not securities.
To recap, the SEC filed a lawsuit against Ripple, a San Francisco-based payment services company, in 2020, alleging that it and its executives Brad Garlinghouse and Christian Larsen conducted illegal security sales via XRP tokens.
But treating Hinman similar utility criptomonedas as tokens made legal team argued that the SEC Ripple showed bias the XRP to treat it as a token of value.
Overall, the legal battle has limited XRP’s rise to date. For example, it remains the only cryptocurrency that has failed to break its all-time high of over $3 in 2018.
But with Ripple securing some wins against the SEC, analysts are hopeful that it would bring sustainable buying momentum back to the XRP market.
I hope Ripple, and if they do then yes it will pump
— Lark Davis (@TheCryptoLark) April 4, 2022
More downward pressure for the price of XRP?
The recent rebound of the XRP token price comes as it is already breaking out of a classic bearish pattern.
In detail, XRP consolidated within an ascending triangle between December 28, 2021 and April 4, 2022.
Ascending triangles are considered continuation patterns as they resolve after price breaks in the direction of its previous trend. XRP broke out of its ascending triangle pattern to the downside on April 5, as shown in the chart below.
Typically, the breakout targets of an ascending triangle become as long as the maximum distance between the upper and lower trendline of the structure when measured from the breakout point. In the case of XRP, the breakout point is near $0.82, while the high of its triangle is around $0.32.
This places the downside target for XPR near $0.50, which would mark a new 2022 low.
Conversely, if the pair XRP / USD remains above USD 0.69 as temporary support is possible rebound to the simple moving average of 50 days (SMA 50 days, blue wave in the previous graph) near 0, 78 dollars in April. In addition, a test of the 200-day EMA (orange wave) around USD 0.88 in the second quarter would then be the next target for bulls.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. Services or products offered are not intended nor accessible to investors in Spain.