Analyst Outlines XRP Price Scenarios Ahead Of Ripple-SEC Case Update
April 22 2024 - 7:03AM
NEWSBTC
In a chart analysis shared via X, the crypto analyst Dark Defender
provided insight into the potential price movements of XRP ahead of
this week’s Ripple-SEC case update. The analysis, conducted on a
monthly time frame, reveals that XRP has been holding above a
critical support trend marked in blue. With the crypto community’s
eyes set on the new Ripple filings expected next week, there’s a
mix of anticipation and caution. XRP Price Enters Potentially
Crucial Week Dark Defender notes that although market news does not
typically have a direct correlation with price movements, the “last
puzzle piece” pertaining to the Ripple case may add a layer of
enthusiasm to the market sentiment surrounding XRP. The question
posed is: What could happen if XRP fails to maintain its position
above the blue support line? According to the analysis, if XRP
breaks below this blue support line, it will likely approach the
two critical Fibonacci retracement levels at $0.4623 (38.2%
retracement level) and $0.3917 (23.6% retracement level). These
figures are derived from the swing high and low points on the
chart, traditionally considered potential support levels where the
price could stabilize or bounce back. Related Reading: XRP Bulls
Roar: Analyst Foresees Explosive Surge With ‘God Candle’ On The
Horizon In the context of the current chart, a drop below these
levels, particularly if the price closes under $0.3917 for two to
three days consecutively, would invalidate the bullish five-wave
structure that Dark Defender suggests could propel XRP to a high of
$5.85. On the flip side, should XRP reclaim the 61.8%
Fibonacci level at $0.6044, it could signify a first step towards a
strong upward move. Between the price range of $0.6649 and $0.3917,
any price movement is considered a sideways trend. A breakout above
the 70.2% level at $0.6649 would likely confirm a bullish trend,
with the analyst highlighting this as a significant threshold for a
positive price trajectory. Above this level, XRP would then eye the
next Fibonacci extension levels of $1.8815 (161.8% extension) and
potentially $5.8563 (261.8% extension), which are ambitiously
projected targets. The chart also highlights a “Main Resistance
Trend” line that has capped the price since the peak of early 2018,
and the current price action is pinched between this descending
resistance and the ascending support trend lines, forming a
converging pattern that traders often interpret as a potential
breakout signal. Related Reading: XRP Whales Are On The Move Again,
But Are They Bullish Or Bearish? A breakout could be the first
bullish indication of a larger rally, with at least one monthly
close above the line required. In the past, several attempts at a
breakout have failed, and even one monthly close was followed by a
fall back below the trendline the following month. Ripple Vs. SEC:
What To Expect This Week Ripple Labs is gearing up to file its
response to the US Securities and Exchange Commission’s (SEC)
remedies briefing on April 22, a pivotal moment in their protracted
legal battle. This response from Ripple is in reaction to the SEC’s
briefing that put forth potential remedies including disgorgement
of profits derived from XRP sales and civil penalties. The
financial stakes are high, with the SEC calculating fines that
could reach around $2 billion, claiming that Ripple engaged in an
unregistered securities offering with its XRP sales. The legal and
financial communities expect Ripple to mount a formidable defense
against the SEC’s claims. Key to this counter-argument will be
undermining the SEC’s assertion of the necessity for disgorgement,
given the alleged lack of demonstrable financial harm to XRP
purchasers. Furthermore, Ripple is likely to leverage favorable
recent legal decisions and regulatory developments, aiming to
weaken the SEC’s position. According to the schedule, Ripple is
expected to submit a public redacted version of its opposition
brief along with associated declarations and exhibits today, if
these materials are devoid of any SEC-designated confidential
information. If confidentiality is a concern, Ripple will file the
documents under seal and submit a redacted public version by April
24. Following this, the SEC will have the opportunity to reply,
with their response anticipated to be filed under seal by May 6. At
press time, XRP traded at $0.53. Featured image from NameCoinNews,
chart from TradingView.com
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