XRP Price Prediction: Will XRP Bounce Or Crash After FOMC Meeting Today?
Highlights
- The SEC proposed Ripple be handed a $2 billion penalty for violating securities laws.
- XRP could suffer another setback if the SEC appeals the partial ruling in July.
- XRP price shows potential for a breakout backed by a double-bottom pattern.
XRP price prediction shows the leading cross-border money remittance token is preparing for a breakout. If bulls regain complete control of the trend, we could see a major move toward $0.6 this week, which would expand the scope to $1 over the next few weeks.
To achieve such a significant milestone, traders will have to ignore the noise in the market as Bitcoin and other major altcoins struggle to regain direction.
As discussed earlier, Bitcoin price lost support at $70,000 and currently oscillates above support at $68,000. Should bulls manage to reclaim the $70,000 level, the chances of BTC reaching a new all-time high will start to increase.
XRP Price Prediction Amid Growing Risks From The Ripple vs SEC Lawsuit
XRP price hovered above $0.48 during the Eurpoean session on Wednesday. It has increased in value by 0.2% in the last hour, with a 0.9% decrease in 24 hours, CoinGecko data shows.
The cryptocurrency community is looking forward to the determination of the ongoing Ripple vs SEC lawsuit. Meanwhile, it has been widely reported that the regulator may be considering and preparing to appeal the rulings.
Since December 2020, when the SEC filed the case, Ripple has been fighting allegations of violating US securities laws. In July, the court ruled that the secondary purposes of XRP did not constitute securities, handing Ripple a partial landmark win.
However, direct sales to institutional investors could be deemed as securities—a situation that could see Ripple pay a hefty penalty and a possible injunction.
The SEC has requested the court punish Ripple for the company’s disregard of security laws, with a $2 billion penalty. If an injection is called for, Ripple would be barred from selling XRP coins directly to institutional investors, not to mention the impact of the ruling on the firm’s future plans in the US.
At the same time, uncertainty could remain after the case as has been determined, as the SEC is likely to appeal against the July ruling on secondary sales of XRP.
The future of XRP could fall into further disarray with the SEC not approving a spot ETF. Ethereum ETFs were recently allowed to list on stock exchanges, awaiting actual trading in a few months.
Brad Garlinghouse, Ripple’s CEO, has expressed optimism for a spot in the XRP ETF, saying that the direction is inevitable. However, this will largely depend on the direction the lawsuit takes in 2024 and its aftermath in 2025.
XRP Nurturing The Next Breakout
XRP nosedived on Friday below $0.5 but stopped above $0.49 level. A rebound has since ensued and reclaimed the ground above $0.5 to trade at $0.05 at the time of writing.
The 20-day Exponential Moving Average (EMA) provides immediate support at $0.5116 as XRP price forms the second consecutive four-hour green candle.
Based on the Relative Strength Index, currently holding at 51 from last week’s dip into the oversold region, XRP shows potential to shape the uptrend to $0.6.
A double-bottom pattern on the four-hour chart hints at a 12% breakout above the neckline resistance between $0.52 and $0.53. Key milestones to watch out for include other resistances at the 50-day EMA in red and the 200-day EMA in purple.
Traders would be willing to enter more buying orders above the double-bottom pattern’s neck resistance area to capitalize on a potential move to $0.6. If this breakout materializes, XRP price might ignite FOMO backing a larger move toward $1.
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