Sunday, October 2

XRP price chart ‘bullish flag’ sets next bullish target at $ 1.50


The price of XRP rose slightly on September 2 when traders assessed that Ripple Labs was gaining an advantage over the United States Securities and Exchange Commission (SEC) in an ongoing courtroom battle.

The XRP / USD exchange rate rose as much as 4.74% to hit $ 1.296 for the first time since August 23. The pair’s rise appeared alongside a surge in trading volume on the four-hour chart, confirming the intention of traders to support the upward move. in the next sessions.

XRP is higher this week, reflecting a similar bullish move in other major digital assets. CrediBULL Crypto, an independent market analyst, noted that the Ripple blockchain token could hit $ 1.50- $ 1.60 below, citing impulsive buying feeling near the bottom of almost all major cryptocurrencies, including Bitcoin (BTC).

SEC vs. Ripple

The latest XRP market buying episode also appears due to speculation that it would be called a utility token at the end of the SEC’s ongoing saga against Ripple in the courtroom. In a lawsuit filed in December 2020, the US regulator charged that Ripple Labs and its top executives sold $ 1.3 billion worth of XRP as “illegal securities.”

Months later, the case reached a point where both Ripple and the SEC wanted to analyze each other’s internal communications. Ripple emphasizes that the SEC has called the major blockchain assets, Bitcoin and Ethereum, utility tokens in its internal meetings, putting XRP in the same category.

Justice Sarah Netburn of the US District Court for the Southern District of New York scheduled an online audience regarding Ripple’s request on Aug 31. He ended up siding with the defendant’s request for a “fair use” right of access, stating that he would conduct a personal on-camera review of the documents.

The conference call attracted attendees from the crypto community with many predicting that Ripple would likely win the SEC’s lawsuit.

CrediBULL Crypto also tweeted:

Additionally, Ripple CEO Brad Garlinghouse, also a defendant in the case, said:

“The SEC’s lawsuit isn’t just about Ripple, it’s about what impossible standards of fair notification and due process through application regulation can do for crypto innovation. Anyone could be next. without prior notice”.

XRP suffered serious reputational damage following the filing of the SEC’s lawsuit in December 2020. As a result, it faced takedowns on many of the major cryptocurrency exchanges, including Coinbase and Bitstamp. The FUD (fear, uncertainty and doubt) also pushed XRP / USD prices down more than 66% in the same month.

XRP / USD 1-month candlestick chart with December 2020 dump. Source: TradingView.com

From the looks of it, Ripple’s small wins against the SEC fueled XRP’s bullish outlook in the near term.

Additionally, VORTECS ™ data from Cointelegraph Markets Pro spotted a bullish outlook turning from yellow to green on September 1 prior to the XRP breakout.

The VORTECS ™ score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements, and trading activity. Twitter

VORTECS ™ Score (Green) vs. XRP Price. Source: Cointelegraph Markets Pro

The VORTECS ™ score rose from 59 (orange) to 67 (green) on September 2 along with a 22.22% increase in Twitter activity, before XRP / USD surged above $ 1.25.

Technical perspective

XRP’s latest gains helped its prices cross above critical downtrend line resistance that constitutes a bullish flag.

XRP / USD 4-hour candlestick chart with a bullish flag. Source: TradingView.com

In detail, bullish flags represent consolidation patterns that follow a strong upward price movement (known as the flagpole). Investopedia reports that such structures are trend continuation indicators, which means that the flags end up sending prices in the direction of their previous trend.

Related: Ripple Files Motion to Expose SEC Employees’ XRP Holdings

As a result, XRP / USD faces the prospect of suffering a bull run, especially as it tries to break out of its Bull Flag pattern to the upside. If the rally continues, the next profit target for the pair would be as high as the height of the flagpole (roughly $ 0.28).

That puts the bullish target for XRP / USD at $ 1.51.

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 trade move involves risk, you should do your own research when making a decision.