XRP’s Path to $6 Unhindered by SEC Appeal: Discover Why
Upon the release of the SEC’s appeal notice, XRP experienced a significant 17.66% decline on the weekly charts, positioning it as one of the major losers in the cryptocurrency market amid a period of general market correction. Nevertheless, historical data suggests that XRP’s current situation may not be entirely bleak, and the asset still retains the potential to attain new peaks.
Overview of the Historical Context
Providing historical context, when the SEC initially sued Ripple and its executives in December 2020 for allegedly conducting $1.3 billion in “unregistered securities sales” involving XRP, the cryptocurrency’s price exhibited a similar reaction. Trading at $0.55 in the week the charges were brought forth, XRP encountered a 69% decline within two weeks, plummeting to a low of $0.17 that month due to panic-selling by investors.
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However, as panic sales subsided, XRP’s price stabilized at the beginning of 2021, leading to a subsequent recovery. Seizing upon the bullish phase of the cryptocurrency market, XRP surged to a peak of $1.96 in April 2021, surpassing its pre-lawsuit value. The April 2021 high marked a remarkable 1,052% increase from the December 2020 low of $0.17. It took four months post-lawsuit for XRP to recuperate and reach the $1.96 peak.
Market Performance
In light of the recent appeal notice by the SEC, XRP has experienced a comparable downturn, currently trading at $0.52. Although the possibility of further downward momentum exists, a successful stabilization of the price at the $0.52 support level could potentially pave the way for substantial gains, should the 2020/2021 pattern reoccur.
Should XRP witness a similar 1,052% surge from the $0.52 level, its price could potentially reach around $6. If the four-month timeframe materializes, this $6 price point could be attained in January of the following year, coinciding with a potential broader market bull run.
Nonetheless, certain market conditions must be met for this recovery to unfold. Notably, XRP’s price movement aligns with the broader market direction, and given ongoing economic uncertainties, such as inflationary pressures and geopolitical tensions, the next phase of the bull run may take longer to materialize.
Analyst Stance on Previous Analysis
It is pertinent to mention that market analyst Peter Brandt has indicated in a previous analysis that Bitcoin (BTC) remains in a bearish phase, despite its recent surge above $66,000. With BTC currently at the $61,000 region, Brandt has suggested the potential continuation of the downturn for a certain duration.
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Kayode Michael is a seasoned cryptocurrency analyst, successful trader, and skilled writer with a strong command of cryptocurrency analysis and price action. He leverages his technical analysis skills to provide valuable insights into emerging market trends and potential opportunities for investors to make informed decisions.
