XRP price is delicately balancing on the line that could determine if bulls get a breakout or a sell-off ensues. The sixth-largest crypto boasting $25 billion in market capitalization with $544 in trading volume, is up 0.1% to $0.4759.
Its peers, the likes of Bitcoin and Ethereum, are up 0.5% and 0.3%, respectively, on the day the U.S. Consumer Price Index (CPI) data comes out. The Federal Reserve depends on the CPI and other economic indicators to gauge the level of inflation and adjust monetary policy accordingly.
If the CPI drops to the expected 3% range, risk assets like BTC, ETH, XRP, and stocks may finally acquire enough momentum to resume paused rallies as investors’ risk appetite increases.
The situation could be slightly more worrying for XRP price, especially after LBRY lost the lawsuit against the Securities and Exchange Commission (SEC).
Is An XRP Price Breakout In The Offing?
XRP is on the verge of a bullish breakout targeting highs around $0.55 in the short term. The presence of a bull flag pattern on the daily chart implies that with a minor push above the short-term hurdle at $0.48, XRP price could validate the uptick.
The 100-day Exponential Moving upholds XRP’s current position by providing support at $0.4730. On the upside, weakening the flag’s resistance at $0.48 would propel the price above $0.50, thus bringing the target at $0.55 within reach.
Reinforcing the bullish outlook in XRP is the soon-to-be-confirmed buy signal from the Moving Average Convergence Divergence (MACD) indicator. Traders may want to confirm that the MACD makes a bullish cross before triggering their buy orders.
The Money Flow Index (MFI) shows that more funds are starting to flow in XRP markets. In other words, as inflow volume increase, momentum builds, paving the way for a recovery.
How LBRY Losing Case Against the SEC Could Complicate Matters for XRP
In a ruling made by US District Judge Paul J Barbadoro, LBRY, a cryptocurrency company, was found to have disregarded the Securities Act. Instead of providing precedence, crypto enthusiasts fear the LBRY lawsuit could further complicate the situation for Ripple.
Judge Barbadoro ruled that LBRY will no longer offer or participate in the sale of unregistered token securities in addition to a $111,614k civil penalty. According to Jeremy Hogan, a Partner at Hogan & Hogan, it is possible to see a similar outcome in the Ripple case.
“The final ruling is out in the SEC v. LBRY case,” Hogan said via a Twitter post. “The Judge did not rule on secondary sales (or, not surprisingly, the Major Questions Doctrine). He enjoined further violations and issued a penalty.”
Hogan argues that while such an outcome is possible, “the Court would have to find that there is not enough to the Fair Notice Defense to have a trial on the issue.” On top of this, “the Court would have to find that past AND present sales of XRP are investment contracts in order to provide injunctive relief.”
The injunctive relief would be a BIG problem for Ripple since it would enjoin sales from escrow. But it’s a problem with a possible solution – just a workaround that might interfere with Ripple’s business plans.
…
No ruling on secondary market sales is a “status quo” ruling.— Jeremy Hogan (@attorneyjeremy1) July 11, 2023
An injunctive relief would be bad news for Ripple as it “would enjoin sales from escrow.”
Related Articles
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
