Key Insights
- The XRP price has rallied straight up to the $3 price level, after breaking out of a bullish pennant.
- This price explosion comes just as anticipation mounts around the appeal case between Ripple and the SEC.
- Analysts like Ali believe that XRP could be on its way towards the $10 price if the momentum holds.
- XRP currently shows a great deal of opportunity but should be approached with caution.
The crypto market has been through several new developments this week, with Bitcoin taking a shot at the $100,000 price level once again.
In the middle of this action, XRP has surged towards the $3 price level for the first time since 2018.
This price movement comes just as anticipation is starting to build around the US SEC’s appeal-related opening brief against Ripple.
Let’s see how XRP broke above this milestone, and go over what comes next for the 3rd largest cryptocurrency by market cap.
XRP Surges Beyond $3
15 January was one to remember for the XRP community, with the cryptocurrency shooting up past the $3 price level.
This shows a great deal of positive investor sentiment, despite the ongoing woes Ripple is battling with the SEC.
The surge also aligns with the incoming filing of the SEC’s opening brief against Ripple Labs—an event that could make or break XRP’s classification as a security.
So far, the bullish market sentiment has been strengthened by small wins from Ripple.
Legal Experts like John E. Deaton, have highlighted that the ongoing appeal is no simple matter. While the SEC might win in the second circuit, Ripple could escalate the case to the U.S. Supreme Court.
XRP Price Dynamics
According to analysts, the XRP price movements require less trading volume than Bitcoin.
This makes it more open to price increases during periods of strong buying pressure.
Other analysts like Ali noted that the cryptocurrency’s price explosion came from a breakout from a bullish pennant formation.
As a result, Ali predicts that XRP could be on its way towards the $10 price level.
The charts show this bullish pennant more clearly, with XRP’s price explosion towards the $3 mark after the breakout.
As illustrated, the cryptocurrency appears to be facing some resistance around the $3.19 price level, and is looking towards a consolidation.
This consolidation will likely confine the cryptocurrency between this $3.19 resistance and the $2.9 price level.
However, a breakout towards the upside is expected to occur after this and push XRP towards the $4.38 zone.
In terms of an XRP price prediction, the $10 target outlined by Ali is entirely possible, given the cryptocurrency’s current behavior.
Legal and Market Implications
The SEC’s legal battle with Ripple is expected to play a huge role in XRP’s price trajectory.
Ripple was fined $125 million in August last year, in contrast to the SEC’s initial $2 billion demand.
The ongoing case’s outcome could redefine the regulatory framework for crypto in the US If the Supreme Court upholds the “Programmatic Sales of XRP” ruling.
Additionally, the expected shift in the SEC’s leadership could largely influence the agency’s enforcement strategy.
In the meantime, traders and investors should understand that XRP’s recent price action shows a great deal of opportunity.
However, caution is advised because the trajectories of Ripple and XRP are greatly influenced by regulatory and macroeconomic factors.
