Ripple (XRP) prints 6 red weekly candles, just like before 39,000% rally in 2017
Wishful thinking, however, may leave many investors to expect a similar outcome this time, no matter how unlikely at this point.
While the SEC v. Ripple lawsuit lingers, XRP has been under pressure in the secondary markets just like nearly every other cryptocurrency available for trading.
XRP is fast approaching the 50% Fib retracement from the late March 2022 highs around $0.91. The price of the digital asset linked to Ripple’s network is now trading at $0.53.
The weekly candlestick chart shows that XRP has printed six red weekly candles so far. The last time this happened, the instrument found itself in the middle of the strongest bullish run in the crypto market, in late 2017, and reached its all-time-high in January 4, 2018, at $3.84.
This was the time when Bitcoin exploded to nearly $20,000 and finally drew mainstream attention to the emerging asset class.
XRP epic rally could happen again, but mind the wishful thinking
Wishful thinking may leave many investors to expect a similar outcome this time, no matter how unlikely at this point. It is true that if such an epic rally has happened once, it could happen again. The timing, however, is a wholly different matter.
The wider digital asset market seems to be following the nearly officially bearish stock markets as the post-pandemic inflation and the Russia-Ukraine war take their toll. There is no sign that there will be any change any time soon.
As to XRP, the markets have been following the SEC v. Ripple lawsuit which outcome could empower XRP like no other crypto but could also trigger a run en masse.
In the meantime, volatility in crypto can be seen as both its strength and weakness. Traders can, no doubt, enjoy such market instability to score gains either by going long or short. US-based investors, however, cannot access their XRP holdings due to its delisting on US exchanges following the SEC complaint against Ripple.
The lawsuit is underway, entering its next chapter – the summary judgment schedule – while having a major pending issue: the fight over the Hinman documents.
The emails and notes related to the former SEC Director’s 2018 speech could make or break the case and expectations are that if the plaintiff is ultimately ordered to produce the documents, it will rather settle with Ripple and the individual defendants.
Ripple Labs has been showing signs of optimism toward the future, including the lease of an entire building in San Francisco, California. “Seeing as most commercial leases are 5 years, this does not seem the hallmark of a company that is planning to relocate its headquarters”, said attorney Jeremy Hogan, who has been commenting on the SEC v. Ripple lawsuit since the beginning.