In the recent edition of ‘Chart Attack’, Vishal Toora from Equity Guru dived into the details of the XRP cryptocurrency. Amid an intense legal battle between Ripple and the Securities and Exchange Commission (SEC), a pivotal decision was made that may have a significant impact on the fate of XRP.
Over the last three years, Ripple had been under scrutiny for allegations of an illegal offering of $1.3 billion through XRP sales. Its defense was rooted in the argument that XRP was more like a commodity rather than a security. In a potentially game-changing ruling, a New York judge has determined that Ripple’s XRP does not inherently qualify as a security, marking a significant victory for Ripple against the SEC.
According to Toora, this ruling has elicited much discussion around its implications for XRP and the broader cryptocurrency environment. Following the decision, the price of XRP witnessed a significant surge of 72% in a single day. However, Toora warns viewers to temper their expectations as this victory is only partial, and the case is not yet entirely resolved.
He further states that Ripple’s blockchain-based system, an alternative to the traditional Swift network, has a strong potential to attract larger banks. Especially in light of the recent court decision, institutions might show an increasing interest in XRP, previously known as the “banker’s coin.”
Using a comprehensive technical analysis, Toora identifies key resistance and support levels for XRP. He pinpoints the 55-cent zone as a significant level that XRP has struggled to surpass. However, the recent surge post-court ruling has seen XRP break this barrier. As a result, Toora suggests the possibility of the price retracing back to the 55-cent zone before a potential uptrend, emphasizing a psychological resistance at around the one dollar mark.
He also cautions investors to keep an eye on the red candlestick patterns following the green surge, indicating that momentum might not necessarily continue. In Toora’s analysis, XRP has entered a corrective phase, and it’s critical to monitor if it dips below the 55-cent zone or breaks above the 80-cent level.
Toora ends his analysis by encouraging traders to watch out for XRP’s price action closely, reminding them of the importance of patience and proper timing. He also emphasizes that while some long-term investors project optimistic price targets for XRP, it’s crucial to keep in mind the reality of the current market structure and price action.
As the legal case unfolds and more banks potentially express interest in Ripple, the future trajectory of XRP remains intriguing, presenting both challenges and opportunities for savvy traders and investors. To keep up to date with these shifts, stay tuned to Vishal Toora’s insightful ‘Chart Attack’ videos.