Taking into account Ripple’s lawsuit with the SEC, we make an XRP price prediction and determine if a breakout will happen.
Cryptoassets are a highly volatile unregulated investment product.
Why is SEC Suing Ripple?
The US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple on 22 December 2020 after alleging that the San Francisco fintech company raised over $1.3 billion via illegitimate methods. The SEC claimed that Ripple conducted illegal security offerings of XRP, Ripple’s native token.
The Lawsuit’s Impact on XRP’s Price
The lawsuit frightened XRP investors, making them believe they could be holding a security. Many XRP maximalists tried to calm the market by stating that majority XRP trading was outside the US, so the SEC’s jurisdiction had no bearing on them and wouldn’t affect the price. They were wrong. XRP lost almost 70% of its value in days following the SEC’s lawsuit announcement. XRP crashed from $0.58 to $0.17.
The sentiment swung to bearish, and many investors believed that XRP would go to zero. But XRP proved that the lawsuit couldn’t prevent it from having a massive price pump. The XRP price has always followed the rest of the altcoin market. So when the altcoin market surged in March 2021, XRP’s price rallied with it. Investors who bought the bottom of the lawsuit crash watched their XRP portfolio shoot up by more than 1,000%
XRP Price Prediction
XRP’s price has shown that the lawsuit can drastically decrease its value, but it also can’t prevent it from having a bull run. Currently, XRP is trading at $0.39. Is a breakout possible, and if yes, where could the XRP top be?
XRP Technical Analysis
XRP took out the lows it set in June 2021 and is currently at key support, testing the high set in May 2017 before it had a blow-off top. If XRP can hold this support, it means the bottom is in, and upside potential is likely. But how high can the XRP price pump?
XRP has shown that it follows the rest of the market. And if the altcoin market pump is imminent, as we expect, XRP will go on a massive bull run. Several financial markets have proven that Fibonacci extensions are a great predictor of tops. The Fibonacci extension has shown that the top of assets is at the 4.236 extension. So our XRP price prediction is that the top will be at $7. Could now be the time to buy XRP?
Let’s assume XRP reaches $7, then the lawsuit is settled. Many investors will wonder if XRP will have a blow-off top and go way beyond our prediction. We believe that will be a fakeout. The market has done that before and caught investors flat-footed with Bitcoin and one of the best crypto exchanges, Coinbase.
Bitcoin’s price was almost $65,000 when Coinbase had its initial public offering (IPO) on 14 April 2021. At the time, Bitcoin had been on a massive bull run, pumping more than 1,400% since March 2020 lows. The market was extremely bullish, and Coinbase’s IPO made many investors believe that Bitcoin would go to $100,000. What followed was a 54% drop in Bitcoin’s price.
A similar scenario could play out for XRP, catching investors flat-footed again.
Cryptoassets are a highly volatile unregulated investment product.
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Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.
Read More:XRP Price Prediction: Will Ripple’s XRP Breakout After Lawsuit?
