After making a bullish crossover between its 20-day and 50-day exponential moving averages, XRP has a strong probability of hitting $1.50 in the fourth quarter of 2021. (EMA).
In the history of XRP charts, the so-called Golden Cross has occurred many times. The previous time that happened was on Aug. 10, when XRP reached a seasonally high of $1.43 before pulling down to the negative.
On the same day, the 20-day EMA of XRP closed over the 50-day EMA, triggering a 400% price increase. XRP hit a new year-to-date high of $1.98 as a result, indicating that the current Golden Cross may elicit a similar optimistic reaction from traders.
The Rising Wedge pattern provides more evidence of an upward trend. The ascending channel pattern’s upper and lower trendlines have recently served as resistance and support for XRP price movements.
As shown in the chart above, the cryptocurrency’s ongoing upward movement coincided with a strong bounce from the Wedge’s lower trendline.
As a result, XRP appears to have a good chance of stretching its rebound towards the Wedge’s upper trendline. For XRP, this roughly translates to a bullish target of $1.50.
SEC vs. Ripple
The latest round of XRP market buying coincided with a recent SEC vs. Ripple lawsuit update.
For the uninitiated, the SEC filed a complaint against Ripple Labs and two of its executives in December 2020, alleging that they raised over $1.3 billion through an unregistered securities offering using XRP tokens.
In response, Ripple Labs has been attempting to demonstrate that XRP is a utility token rather than a security asset, citing a speech by former SEC director William Hinman in which he stated that Ether, a blockchain token similar to XRP, is not a security asset.
Hinman’s opinions were personal, according to the current SEC regime. However, new evidence suggests that the US securities regulator may have been lying.
Ripple’s legal team recently filed court documents showing that the SEC directed its employees to analyse digital currencies using Hinman’s framework. It could be used to show that Hinman’s speech was more than just a personal opinion, but rather an official directive.
Ripple Labs won the case, and Judge Netburn added the proofs to their “in camera” review.
#XRPCommunnity #SECGov v. #Ripple #XRP BREAKING: 1/3 Judge Netburn Orders the SEC to submit for in camera review the two documents related to the SEC’s meetings with law firms and the email chain concerning discussions with a third party who received guidance from the SEC pic.twitter.com/zbjDi7HKYJ— James K. Filan (@FilanLaw) October 8, 2021
The decision was made on Oct. 8, and the price of XRP rose by 17 percent as a result.
A bearish reversal pattern can also be found in the XRP’s Rising Wedge. As a result, future gains in the cryptocurrency might be jeopardised if the price falls below the lower trendline.
The XRP price may fall as low as the maximum distance between the Wedge’s lower and upper trendlines if a bearish breakout occurs. The cryptocurrency’s downside goal would therefore be $0.65.
The author’s thoughts and opinions are purely his or her own and do not necessarily reflect those of Cointelegraph.com. Every investing and trading decision entails risk, so do your homework before making a decision.
