The XRP price has fallen by 5% in the past 24 hours, with its dip to $0.491066 coming as a correction hits the cryptocurrency market as a whole.
Its current price means it has fallen by 5% in a week but is still up by 26% in the last 30 days, with the token also having risen by 44% since the beginning of the year.
Despite today’s fall, XRP is primed to witness further gains in the not-too-distant future, with its chart forming a classic pennant, which can signal an incoming breakout.
And with Ripple also awaiting the conclusion to its long-running case with the SEC, XRP could also end up having a massive fundamental boost in the next few weeks or months.
XRP Price Prediction as XRP Chart Prints Bullish Pennant – Huge Price Pump Incoming?
XRP’s chart makes for some interesting reading, with its recent price movements forming a so-called pennant (i.e. a flag), in which an asset’s price gets increasingly sandwiched in between its support and resistance levels.
It’s clear from the chart above that XRP’s support level (green) is converging with its resistance level (red), which means that something has to give at a certain point.
However, it’s not a given that the convergence will result in a breakout, since XRP has just fallen substantially through its previous support level of $0.50.
At the same time, XRP’s relative strength index (purple) has dropped from 70 at the beginning of April to just under 50 today, with the indication being that it could fall further.
It may be pulled down by the cryptocurrency market as a whole, which seems to have corrected in response to a combination of ongoing concerns regarding interest rates and Gary Gensler’s vague remarks yesterday regarding Ethereum’s legal status.
However, while XRP may be set for further falls in the next few days, its medium- and long-term future still looks good, with the cryptocurrency community awaiting an end to Ripple’s case with the SEC.
This may arrive in the next few weeks, with all major pieces of evidence having been submitted and with lawyer John E. Deaton suggesting that a decision could arrive by May 6.
More importantly, expert opinion suggests that Ripple has a real chance of securing a positive judgment or settlement, enabling it to continue its business as before and also enabling exchanges to list XRP.
This includes lawyer Jeremy Hogan, who has recently argued that the SEC hasn’t been effective in proving that buyers of XRP entered into an investment contract with Ripple when they first purchased their tokens, something which the regulator should have demonstrated if it wanted to substantiate its underlying case.
Ripple has also seen a number of important decisions go its way over the course of the case, including winning access to emails related to a 2018 speech given by then-SEC Chairman William Hinman, who stated that Ethereum is not a security.
As such, Ripple has a good chance of prevailing, and if it does, there’s no question XRP would experience a huge rally.
Indeed, it could easily break $1 once again in a matter of weeks following the case’s conclusion, while following months may see it return to $2, $3 and higher.
This article was originally published by CryptoNews.
