Ripple’s price is currently stuck in a consolidation phase, which is good news for long-term investors. There’s a pattern called “inverse head-and-shoulders” that might lead to a 60% price increase, up to $1.234, if it plays out successfully.
However, if the price drops below $0.413, it could invalidate this positive outlook. This consolidation period is a good chance for long-term investors to buy XRP.
On July 13, the US Securities and Exchange Commission (SEC) suffered a significant setback in its lawsuit against Ripple. This led to a huge 100% surge in XRP’s price, pushing it to $0.938.
This legal decision marked a historic win not only for Ripple and XRP supporters but for the entire cryptocurrency industry. However, as of October 19, the SEC has dropped its cases against Ripple’s CEO, Brad Garlinghouse, and Executive Chairman Chris Larsen.
Although these are two positive developments for Ripple, the main SEC vs. Ripple lawsuit, which alleges that XRP sales to institutions were illegal securities offerings, is still ongoing. The recent filing mentions that both the SEC and Ripple plan to discuss the schedule for addressing the issue of what remedies are appropriate for Ripple’s Section 5 violations related to its Institutional Sales of XRP.
If these discussions favor Ripple, it could provide a significant boost to XRP’s fundamentals and potentially trigger a price rally. Currently, XRP is trading at $0.512.
Historically, XRP’s price has often followed a pattern known as an “inverse head-and-shoulders” before experiencing a major and volatile upward movement.
On July 13, the US Securities and Exchange Commission (SEC) faced a significant loss in its lawsuit against Ripple. This had a big impact, driving the price of XRP up by almost 100% to $0.938.
This legal decision was a historic victory, not just for Ripple and XRP supporters, but for the entire cryptocurrency industry. However, by October 19, the SEC had dropped its cases against Ripple’s CEO, Brad Garlinghouse, and Executive Chairman Chris Larsen.
Even though these are two wins for Ripple, the SEC is still likely to pursue its primary lawsuit against Ripple, which argues that XRP sales to institutions were an illegal distribution of securities. However, a recent filing mentions that the SEC and Ripple plan to discuss the schedule for addressing the issue of what penalties are appropriate for Ripple’s Section 5 violations related to its Institutional Sales of XRP.
If these discussions favor Ripple, it could provide a significant boost to XRP’s fundamentals and potentially trigger a price rally. Currently, XRP is trading at $0.512. In the past, XRP’s price has typically followed an “inverse head-and-shoulders” pattern before making a major and volatile upward move.
Currently, on the weekly chart, Ripple’s price is showing signs of a potential “inverse head-and-shoulders” pattern. This pattern has three distinct points – the central one, called the head, is lower than the other two, which are known as the shoulders. Drawing a line between the peaks of the valleys creates a declining resistance level, called the neckline.
If there’s a clear breakout above this neckline or it transforms into a strong support level, it could indicate the start of an uptrend. In this scenario, the price target is determined by measuring the distance between the peak of the right shoulder and the lowest point of the head and adding that value to the breakout point.
But for Ripple’s price, things are a bit different. The right shoulder hasn’t fully formed yet, so the inverse head-and-shoulders pattern isn’t confirmed. To confirm it, XRP’s price needs to increase by about 50% from its current level and retest the neckline.
Assuming this happens and there’s a decisive breakout above the neckline, the measurement suggests a potential 60% increase to $1.234. Altogether, this move would amount to a 140% surge from the current price of $0.513.
XRP/USDT 1-week chart: Source-TradingView
Conversely, if Ripple’s ongoing consolidation results in a drop below the $0.413 support level, it would negate the validity of the inverse head-and-shoulders pattern. This downward movement would disrupt the measurements associated with this technical pattern and could potentially lead to a correction in XRP’s price, bringing it down to around the $0.333 mark. This is close to the lowest point of the pattern, known as the head.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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