Key Takeaways:
- XRP prices might jump 28% from current levels after breakout from a bullish pattern.
- Ripple CEO shared his views on the ongoing SEC lawsuit.
- Ripple's continued to grow in Q2-2022 despite its legal issues.
NEW DELHI (CoinChapter.com) — XRP prices broke out of a bullish technical pattern called the ascending triangle on Jul 30.
A horizontal trendline that connects swing highs and an ascending trendline connecting swing lows forms an ascending triangle pattern. Volume helps determine if a breakout is strong.
In an ideal world, buyers would enter the market as the trendlines close the gap, pushing prices above horizontal resistance with heavy volumes. Unfortunately, a low-volume breakout on the upside will likely fail, resulting in a pullback.
Per the rules of technical analysis, the price target for a breakout is equal to the triangle’s height at its thickest point. Therefore, analysts speculate XRP prices might jump more than 28% from current levels to reach $0.5.
XRP’s Moving Average Might Chart A Golden Cross
Meanwhile, Ripple’s likelihood of extending the upside momentum has increased as its moving averages form a golden cross. Simply put, XRP’s 20-day exponential moving average (20-day EMA; red wave) looks likely to close above its 50-day EMA (purple wave) — a buy signal in the near term.
A golden cross usually indicates a bullish uptrend on the horizon. As such, bulls would likely try to push above the Ripple token’s price’s immediate resistance at $0.4, which the token has failed to move above since Jun 10.
Related: Could Ripple (XRP) be classified as security — realistically?
Moving above immediate resistance might help XRP target resistance from Ripple’s 100-day MA line (blue wave) near $0.434.
Ripple’s relative strength index is nearing the overbought threshold with a value of 63.18 on the daily chart. The RSI measures the magnitude of recent price changes to analyze overbought or oversold conditions. Traders often consider overbought RSI values as a sell signal.
Hence, an overbought RSI might result in the altcoin’s prices dropping to support from its 50-day EMA (purple wave) near $0.36. Additionally, a marketwide sell-off could see the Ripple token’s prices fall 15% to test support near $0.33.
Brad Garlinghouse Shared His Views On The SEC Lawsuit
Ripple CEO Brad Garlinghouse spoke about the firm’s ongoing legal battle with the U.S. Securities and Exchange Commission in an interview with Axios at the Collision 2022 event.
In answer to a question, Garlinghouse stated that if Ripple lost the case, XRP would be considered a security, but only in the U.S., highlighting that the SEC’s jurisdiction ends outside the country’s borders.
Also Read: XRP breaks below bearish pattern as Hinman’s conflict of interest might hurt SEC.
Additionally, the Ripple chief executive emphasized that Ripple continued to grow outside the U.S. despite the legal issues. Garlinghouse also pointed out that he was betting on Ripple to win the battle against the SEC.
I am betting that because I think the facts are on our side. I am betting that because the law is on our side.
Brad Garlinghouse said.
However, Garlinghouse expressed frustration that the case resolution was taking too long.
Ripple Growing Despite Legal Issues
Ripple’s XRP-backed On-Demand Liquidity (ODL) solution grew by nearly 900% year-on-year (volume) in 2022’s second quarter, per the firm’s Q2 2022 XRP Markets report. Additionally, the firm sold nearly $408.9 million worth of XRP in the same timeframe.
The report highlighted that Ripple’s ODL-related sales tallied over $2.12 billion in Q2. In comparison, Q1 saw only $273.2 million worth of XRP sales. The report also highlighted the expansion of several interoperability initiatives.
Ripple has continued to engage in sales solely related to ODL and these volumes have ramped up substantially as Ripple’s ODL business expanded globally.
The Q2 report stated
Furthermore, Ripple noted it had bought XRP tokens in the secondary market and shared plans to continue “purchases at future market prices as ODL continues to gain global momentum.“
In addition, Ripple’s partner firm Peersyst Technology announced that it had developed the first version of the XRP Ledger-powered National Land Registry.
The firm had entered a deal with the Colombian government to record and register land registry rights in Colombia. The move marked a historic first for Ripple.
At writing, XRP traded at $0.387, down 0.06% on the day.
