Ripple price could kickstart 140% rally to $1.23 after SEC's "surrender"

Ripple price is in an accumulation zone for long-term investors.
XRP buyers could be in for a treat if the inverse head-and-shoulders pattern plays out.
A successful completion and breakout from the said technical formation could trigger a 60% rally to $1.234.
Invalidation of the bullish thesis will occur on the breakdown of the $0.413 support level.

Ripple (XRP) price continues to surge following the major market trend, which has suddenly flipped bullish. XRP, in particular, has a better reason to rally after the US SEC agreed to drop the suit against Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen.

Ripple FAQs

What is Ripple?

Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.

What is XRP?

XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.

What is XRPL?

XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.

What blockchain technology does XRP use?

XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.

SEC calls it quits

On July 13, the US Securities and Exchange Commission scored a major defeat against Ripple in its lawsuit. This major development caused a massive rally in XRP price that pushed it up by nearly 100% to $0.938.

While this lawsuit’s decision was a historic win not just for the Ripple and XRP community but for the cryptocurrency industry as a whole. But as of October 19, the commission has decided to end the cases against Ripple’s CEO, Brad Garlinghouse and Executive Chairman Chris Larsen.

While these are two victories in Ripple’s corner, the SEC is still likely to pursue the main SEC vs. Ripple lawsuit, which claims XRP sales to institutions were unauthorized distribution of securities. But the recent filing states that,

The SEC and Ripple intend to meet and confer on a potential briefing schedule with respect to the pending issue in the case – what remedies are proper against Ripple for its Section 5 violations with respect to its Institutional Sales of XRP.”

If this meet does go in favor of Ripple, it would be a major fundamental boost to XRP and could even catalyze a rally.

Ripple price could blast higher

With the fundamental aspects in mind, the Ripple (XRP) price currently stands at $0.512. Judging from the past, XRP price has always formed an inverse head-and-shoulder pattern before a massive volatile move to the upside.

In its 10-year history, ALL major, mind-melting $XRP moves had this pattern pop up before it.
...
Now, a similar setup can be seen on the 3-day chart.#XRPArmy #XRPCommunity https://t.co/ATsc5UjXag pic.twitter.com/KWOfXLwDb9
— MAXPAIN (@Mangyek0) August 16, 2023

Read more: XRP Price Prediction: SEC vs. Ripple lawsuit’s 100% rally could be just the start

Currently, on the weekly time frame, Ripple price is once again setting up a potential inverse head-and-shoulders pattern. This technical formation has three distinctive swing lows, with the central one deeper than the other two, known as the head. The ones on either side of the head are termed shoulders. Connecting the peaks between the valleys using a trend line shows a declining resistance level, in this case, known as the neckline.

A decisive breakout or a flip of the neckline into a support floor will confirm the start of an uptrend. In such a case, the target is obtained by measuring the distance between the right shoulder’s peak and the head’s lowest point. Adding this value to the breakout point reveals the target.

For Ripple price, however, things are different. The right shoulder is yet to form, hence, the inverse head-and-shoulders setup is not yet confirmed. For confirmation, the XRP price needs to rally nearly 50% from the current position and retest the neckline. Assuming the remittance token ends its consolidation and kickstarts

After the 50%, if Ripple price produces a decisive breakout above the neckline, the measurement rule suggests that a 60% rally to $1.234 is on the cards.

In total, this move would constitute a 140% rally from the current position of $0.513.

XRP/USDT 1-week chart

On the other hand, if the ongoing Ripple price consolidation breaks below the $0.413 support level, it would invalidate the inverse head-and-shoulders setup. This move will distort the technical formation’s measurements as it could easily trigger a correction in XRP price to the $0.333 level, which is close to the head’s lowest point.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.