XRP, a cryptocurrency created by Ripple, has surged by 10% to reach its highest value in five months following rumors that the company could potentially win its legal battle against the US Securities and Exchange Commission (SEC). The news has excited investors, who see XRP as a high-growth investment opportunity.
XRP Outpaces Bitcoin and Ethereum with 15% Surge
Over the past month, XRP has outstripped both Bitcoin and Ethereum, surging by nearly 15% to reach its highest price point in ten months at $0.58. This sudden price surge is attributed to the Commodity Futures Trading Commission referring to Bitcoin, Ether, and Litecoin as commodities in its court filing against Binance. Consequently, many experts believe that there is a likelihood that SEC might also consider XRP a commodity.
Legal disputes related to Ripple have contributed to the fluctuation in value of XRP over recent years. Currently, the SEC v. Ripple lawsuit is expected to conclude by the end of March with analysts are hopeful that Ripple could win the case. If this happens, it will be a big victory for Ripple as well as the cryptocurrencies industry. The legal experts feel that Ripple has an advantage and could potentially win the lawsuit against SEC after which traders could see the classification of XRP tokens as commodities instead of securities.
Rising Value Brings About Surge in Profit Taking Volume
With a rising value comes profit taking. Santiment, an on-chain analytics firm, reported large amounts of profit-taking taking place from XRP investors – just yesterday alone over $15 million worth of profits have been generated within 24 hours.
Historically speaking, profit-taking volume surges during periods of sharp growth that may cause bearish effects on the cryptocurrency’s price. Despite this pattern, profits for XRP have increased by 46% in the past month, with the ratio of profit volume to loss volume being more than double. A healthy sign for XRP’s future stability.
Potential for Correction Due to Technical Indicators
While XRP has been performing magnificently lately, analysts warn that it might face a significant correction after the SEC v. Ripple ruling concludes. Technical indicators suggest that a downside price target of around $0.38 in April, down 35% from current levels, could be in play.
Moreover, on a broader time-frame, XRP’s rising channel appears like a bear flag. This is a bearish technical indicator that looks like it’s aiming at XRP’s price falling to $0.189 by June – this could be down over 65% from current price levels.
XRP & Other Cryptocurrencies Values Surge
XRP isn’t the only cryptocurrency experiencing a value surge these days. Bitcoin and Ethereum values have risen significantly in recent weeks as well, signifying positive growth across the cryptocurrency industry.
Final Thoughts:
Despite the various fluctuations surrounding cryptocurrencies and their legal battles, those who support Ripple are hopeful that it will come out victorious – thus leading to more legitimized regulation and ultimately resulting in even higher returns for investors. So keeping an eye out on XRP is crucial not just for its present but for its future possibilities as well.
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