The price of Ripple (XRP) was faltering between profits and losses on September 19, despite hopes that Ripple would eventually win its long-standing legal battle against the US Securities and Exchange Commission (SEC).
Ripple and the SEC both agreed on Friday to expedite the trial to respond to $XRP security or not.
— Jeff Sekinger (@JeffSekinger) September 19, 2022
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XRP/USD pair falls over 1% to $0.35 making it extremely bullish Bullish and Bearish Wicks Its on the 19 september daily candlestick. In other words, its intraday performance indicates an increasing bias struggle among traders.
The risk of XRP to catalysts other than the SEC vs. Ripple lawsuit could lead to indecision. Namely, the ability of the Federal Reserve to raise its benchmark interest rates by 75 or 100 basis points at its policy meeting on Sept. 20.
As Cryptooshala reported, fears of aggressive rate hikes have weighed on crypto markets throughout the year, including Bitcoin (BTC) and Ether (ETH). Given the coin’s consistently positive correlation with Bitcoin since October 2021, XRP is also not immune.
For example, XRP had a daily correlation coefficient of 0.47 with Bitcoin on 19 September. A reading of 1 means that the two assets are run in lockstep.
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independent market analyst cheds Thrown light on That XRP has been fluctuating within a rectangular range since June, adding that “there is nothing to be excited about at the moment”.
The range is defined by the $0.38-$0.40 acting as resistance and $0.28-$0.30 acting as support. XRP price fell after testing the resistance and was heading towards the support area as of September 19, as shown below.
Interestingly, a move toward rectangular range support can also trigger a classic bearish reversal pattern called head-and-shoulders, defined by three consecutive peaks forming above a common support level. in which the mid peak (head) is higher than the other two. left and right shoulders).
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A head-and-shoulders pattern resolves after price breaks below its support line and falls to the maximum distance between the middle peak and support. Applying this principle to the daily chart of XRP presents $0.242 as a downside target.
In other words, XRP price could drop another 30% by the end of this year, mainly driven by macro catalysts.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cryptooshala.com. Every investment and trading move involves risk, so you should do your own research when making a decision.
Credit : cointelegraph.com