A closely followed crypto analyst says that XRP will explode once the lawsuit between Ripple Labs and the U.S. Securities and Exchange Commission concludes, but more downside is possible before then.
In an interview with Thinking Crypto, the pseudonymous analyst known as Credible Crypto says XRP’s technicals are currently suggesting more bearish action.
[adinserter block="1"]“XRP is one that doesn’t look that great right now… I think that we’re probably going to go for these lows here ($0.50) and push into… this weekly level of demand that we have here. Again, this level is significant because from this level we saw a major move to the upside after what was essentially about six months of consolidation.
So the origin of the point at which this consolidation starts to break whether that be the upside or the downside, typically then acts as support or resistance when it’s revisited. So just from a high timeframe perspective, you can expect that this region in general, and the tighter we get here, this general region is going to act as support as we’ve seen it act in the past.”
Credible Crypto says that there are big fundamental reasons to hold XRP despite the ongoing downward price action. According to the crypto analyst, the lawsuit between Ripple Labs and the SEC, which was filed in December of 2020 on allegations that XRP was sold as an unregistered security, could ultimately provide regulatory clarity for the token while the rest of the space ends up in limbo.
“The reason why I still hold such a massive amount of XRP despite the sluggish price action is that I now kind of see it as a hedge against the rest of the market. If this SEC lawsuit ends – and I think it will, I don’t know when – but I think it will end ultimately favorably for Ripple and XRP and when it does end, XRP will essentially be the only crypto asset with regulatory clarity in the United States…
When the case does get settled, you can expect XRP’s price to absolutely pop. So if you’re waiting to hear the outcome of the case to jump in, you’re going to be too late. So you’re placing your bets right now and if your bet pays off and XRP wins, XRP is going to rocket, and then everything else is at the mercy of the SEC, and we don’t know what’s going to happen.”
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