XRP price could rally by 50% based off comments from a former SEC director
2022.10.03 15:53
XRP is hoping that the token could see a massive price rally in 2022 based off the fingers-crossed assumption that Ripple will win its long-running legal battle against the U.S. Securities and Exchange Commission (SEC).
Hinman documents to save XRP bulls?
On Sept. 29, the district court judge in the case, Judge Analisa Torres, ordered the commission to release the documents penned by William Hinman, the former director of the corporation finance division at the SEC.
Hinman may have written about Ether (ETH), the native token of the Ethereum blockchain, not being a security in the concealed documents, believes Ripple. That is primarily because Hinman had proclaimed the same in his speech at the Yahoo Finance All Markets Summit in June 2018.
#XRPCommunity #SECGov v. #Ripple #XRP 1/4 Some thoughts on the next steps in the quest for the Hinman documents. The SEC has a number of procedural cards they can play to try to further delay complying with the order to produce the Hinman documents.
— James K. Filan 118k (beware of imposters) (@FilanLaw) September 30, 2022
Ripple’s defense could use Hinman’s writing as evidence that its blockchain’s native token, XRP, should not be treated as a security, which is the opposite of what the SEC claimed in the lawsuit filed in December 2020.
XRP has since been ousted from many regulated crypto exchanges, including Coinbase and Bitstamp. As a result, it is now among the only top cryptocurrencies that have neither reclaimed nor established a record high during the 2020–2021 crypto market boom, reflecting caution from investors.
Some might argue, that from the vantage point of technical analysis, XRP price remains undervalued compared to other top-ranking cryptocurrencies. And a Ripple win might change that, given the token rallied 20% in a day after Judge Torres’s order.
$XRP is on a mission to save the markets pic.twitter.com/zxBQLP1iBs
— Teddy (@TeddyCleps) September 30, 2022
Ripple going to go full send mode $XRP pic.twitter.com/276BsCVlSf
— Johnny (@CryptoGodJohn) September 29, 2022
Related: CFTC commissioner proposes office focused on retail crypto investors
Resistance and confluence
From a technical standpoint, XRP is one breakout away from posting a 50% price rally.
Notably, the token now tests a resistance confluence of one multi-year descending trendline resistance, a flipped support bar and a Fibonacci line — all pivoting near $0.57. A Ripple win could help XRP break decisively above this confluence.
XRP/USD weekly price chart. Source: TradingView
Such a breakout could have XRP eye a run-up toward the next Fib line near $0.72, up over 50% from Oct. ‘s price. Conversely, a pullback could crash XRP to its previous support level of $0.31, down 35% from the current price levels.
“$XRP is basically a court case play,” noted independent market analyst DonAlt, adding:
“If they win the whole case $XRP giga pumps. if they lose it’ll be a nice -50% candle. Also, an $XRP loss would make other cryptos more vulnerable to attack, so you better cheer them on.”
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