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daily technical analysis and the latest news from the cryptocurrency world. The Ripple price is on the verge of flipping a resistance into support which
could trigger a massive bull run. The Ripple price action from late November 2018
to date has formed an inverse head-and-shoulders. This pattern is a bottom reversal
pattern, and a successful breakout hints at the start of a new uptrend.
The technical formation contains three valleys, with the center one forming the head and the
ones at the extremes are known as shoulders. While the shoulders are of comparable
depths, the head extends far lower. The peaks of these valleys are all
connected at the neckline.
In Ripple’s case, it is a horizontal resistance level at $0.63.
This setup’s target at $1.09 is determined by measuring the head’s depth from the right shoulder
and adding it to the breakout point at $0.63. At the time of Video Editing, the Ripple price
pierced through the horizontal supply barrier but hasn’t closed above it yet.
Supporting this bullish outlook are the addresses that have been on
an accumulation spree since January. Whale addresses holding between 100000 to 1000000
Ripple and 1000000 to 10000000 Ripple have increased by 6.17% and 5.85% in that order.
This move represents that investors are optimistic about the Ripple price and
believe that it will appreciate shortly. Santiment’s MVRV model for Ripple price
shows that it is hovering around 14%, suggesting that not many addresses are in profit.
Therefore, these market participants might not be inclined to sell any time soon.
In early February, the 30-day MVRV model was hovering around the same level and was
followed by a 45% surge in the Ripple price. All in all, the Ripple price
looks primed for a bull run. However, this upward move is dependent on bulls’
potential to produce a decisive daily candlestick close above the neckline at $0.63.
Failing to do so might result in a reversal of the bullish momentum.
In that case, the Ripple price could drop 16% toward the 61.8% Fibonacci retracement level at
If the sellers aren’t contained here, the pullback could extend toward the shoulder’s bottom
at $0.46 or the 50% Fibonacci retracement level. A breach below this barrier will invalidate the
inverse head-and-shoulders pattern and open the path for bears to rampage.
In the interest of brevity, The Ripple price approaches the neckline
of an inverse hand-and-shoulders pattern. A strong close above the neckline at
$0.63 projects a 73% bull rally to $1.09. If sellers prevent this scenario from evolving, a
reversal in Ripple’s bullish momentum could occur. Usually, legal troubles are bad news
for stock prices and crypto assets. Ripple, the native asset of the Ripple payments
platform, is proving to be an exception. After rising over 5% in the last day, the price of
an Ripple token is now $0.60, and the market cap is $27.9 billion, according to data from Nomics.
That's higher than where the price was before the SEC filed a $1.3 billion
lawsuit against Ripple Labs. On December 18, 2020, four days
before the suit, Ripple was worth $0.58 with a market cap under $27 billion.
It’s been a remarkable turnaround for the token, which dipped as low as $0.17
after the SEC brought the lawsuit. The SEC says that Ripple Labs, co-founder
and executive chairman Chris Larsen, and co-founder CEO Brad Garlinghouse,
are responsible for $1.3 billion in unregistered securities offerings Ripple
being the unregistered security in question.
Broadly speaking, a security is an investment
contract that signifies a stake in a financial venture with the expectation of future profits.
The SEC regulates securities sales in the US. In the wake of the allegations, several exchanges
and trading platforms among them Coinbase, Binance, Blockchain, Crypto and
eToro suspended Ripple trading. Ripple has also suffered setbacks; its
partnership with MoneyGram ended in March after the latter cited “uncertainty
concerning their ongoing litigation.” But Ripple and its leadership team
have fought back against the charges. It’s asked the court to force the SEC to
turn over documents regarding the agency’s examinations into Bitcoin and Ethereum, which
have seemingly escaped the SEC’s scrutiny. The agency has been tight-lipped about
its approach to evaluating crypto assets. Those documents could include mention of Ripple
as a "virtual currency" rather than as a security, which could boost Ripple’s case.
Or, armed with the agency’s criteria for determining which crypto assets are
securities, Ripple could argue that it shares the characteristics of Bitcoin and Ether.
Ripple’s most recent price surge the token briefly touched $0.60 in February before dipping
to $0.41 two weeks later may signal that investors believe the cryptocurrency, and the
firm behind it, can survive the SEC’s case, especially after stablecoin issuer Tether escaped
a years-long New York Attorney General’s Office investigation into financial fraud with an
$18.5 million fine but no admission of guilt. The coin's price may also demonstrate that the
crypto market overall is just really, really hot. However, it has increased in price at a faster
clip than several other coins in the top 10. According to Nomics, Ripple’s price has
gone up 170% since the start of the year, outpacing Bitcoin, Ethereum, Litecoin, and
Chainlink among the top 10 coins in market cap. Ripple traded 3.18% higher at $0.58 at press
time on Monday after the company associated with it Ripple Labs Inc said it acquired a stake
in a Malaysia-based cross-borders payments firm. What Happened: Ripple said Monday it acquired a
40% stake in Tranglo which will allow it to “meet the growing customer demand in the region.”
The partnership will allow Ripple to expand the reach of its On-Demand Liquidity, which uses
Ripple to send money instantly.
This, the company claims, reduces the need for working capital.
“Tranglo will play a critical role in supporting existing corridors, such as the Philippines,
and introducing new ODL corridors within its current network,” said Ripple.
Why It Matters: Tranglo has processed over 20 million transactions which total up
to $4 billion in value since its inception, said Ripple, Bloomberg reported.
The announcement comes a week after Brooks Entwistle, a former Goldman
Sachs Group Inc and Uber Technologies Inc executive became the managing director
of Ripple’s Southeast Asian operations. Ripple has risen 159.70% besting the returns of
the apex cryptocurrency Bitcoin so far this year, which rose 96.65% in the same period.
The rise of Ripple comes despite the fact the company faces litigation from the U.S.
market regulator the Securities and Exchange Commission over allegations that Ripple conducted
an unregistered $1.3 billion securities offering.
In December, Coinbase delivered a jolt to Ripple
when it delisted the coin from its platform. As it faced a lawsuit, Ripple claimed that Bitcoin
and Ethereum were susceptible to Chinese control as they are subject to a simple majority rule.
The statement earned Ripple some backlash from Vitalik Buterin, the co-creator of Ethereum.
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