A US regulator called Bitcoin, Ether and Litecoin commodities in its court filing against Binance. He did not mention XRP anywhere.
XRP (XRP) has outperformed its main cryptocurrency rivals in the past 24 hours, while reaching its highest price in 10 months.
XRP price hits 10-month highs
On March 29, the price of XRP rose almost 15% to $0.58, its highest level in ten months, outperforming Bitcoin (BTC) and Ether (ETH) in the last 24 hours which were up around 4.5% and 2.75 %, respectively.
The Commodity Futures Trading Commission (CFTC) referred to Bitcoin, Ether, and Litecoin (LTC) as “commodities” in its court filing against Binance. Although the US regulator did not name XRP, many they assumed that the token would be categorized as a commodity.
The lawsuit will likely conclude by the end of March, and legal experts believe that Ripple has a chance of winning. The XRP price is up 45% year-to-date this month on similar hopes, including the March 29 rally, complemented by optimistic investor interpretation of the CFTC court filing.
#XRP bucks the market trend with 8% surges to a 5 month high of under $0.50#CFTC‘s #Binance filing could classify $XRP as a commodity instead of a security as alleged by #SEC in #Ripple vs. SEC case@Ripple‘s CTO argument gains traction and XRP price impacted by case progression pic.twitter.com/eFB28Ehmj0
— LaCryptoLycus (@CryptoLycus) March 28, 2023
Is a 35% XRP price correction coming?
The XRP price rally brought it closer to the breakout target of $0.60. However, there remains the possibility of a large correction following the SEC ruling against Ripple as a “sell the news” event.
Technical indicators are also showing that the XRP/USD pair is facing the upper trend line of its predominant bullish channel. Therefore, a correction towards the lower trend line is now in play, with the price objective being down around $0.38 in April, 35% below current price levels.
On a longer time frame, the rising channel appears as a bear flag, a technical indicator of bearish continuation.
The completion of the flag pattern could see the price of XRP fall to $0.189 in June, a decline of more than 65% from current price levels.
This article does not contain investment advice or recommendations. All investing and trading involves risk, so readers should do their own research before making a decision.