XRP (XRP) has been outperforming its top-ranking crypto rivals over the past 24 hours while reaching the highest price in 10 months. On March 29, XRP’s price surged by nearly 15% to $0.58, its highest level in ten months, outperforming Bitcoin (BTC) and Ether (ETH) in the past 24 hours that rose around 4.5% and 2.75%, respectively. This price surge is attributed to investors’ optimistic interpretation of the Commodity Futures Trading Commission (CFTC) court filing, which did not name XRP but referred to Bitcoin, Ether and Litecoin as commodities. Many assumed the token would be categorized as a commodity, with similar hopes of XRP winning its legal battle against the SEC.
The SEC had filed a lawsuit against Ripple Labs Inc, the parent company of XRP, in December 2020, alleging that the company conducted a $1.3 billion unregistered securities offering. Legal experts believe Ripple Labs may have a chance to win, with the lawsuit expected to conclude by the end of March. XRP price has since rallied 45% month-to-date on these hopes, including the March 29 price rally.
However, investors should be cautious about the potential risks associated with investing in cryptocurrencies. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Technical analysis of XRP’s price chart also suggests that a big correction may be ahead after the SEC vs Ripple ruling, as a sell-the-news event remains possible. Technical indicators show the XRP/USD pair facing the upper trendline of its prevailing rising channel, and a correction towards the lower trendline is now in play. The downside price target is around $0.38 in April, down 35% from current price levels.
On a broader timeframe, the rising channel appears like a bear flag, a bearish continuation technical indicator. The completion of the flag pattern could see XRP price falling to $0.189 by June, down over 65% from current price levels. This suggests that investors should be cautious and watchful of XRP’s performance in the coming months.
XRP’s price levels have been incredibly volatile in recent years, which makes investing in this cryptocurrency particularly risky. In December 2017, XRP’s price surged from $0.23 to $3.84, a gain of over 1,560% in less than a month. However, it quickly lost 65% of its value, falling to $1.36 in the following month. This highlights the high risk associated with investing in cryptocurrencies such as XRP.
In summary, XRP’s price has been on a surge, reaching its highest level in 10 months on March 29, 2021. However, investors should be cautious of the potential risks associated with investing in cryptocurrencies, particularly given the legal battle between Ripple Labs and the SEC. Furthermore, technical analysis of XRP’s price chart suggests that a big correction may be ahead, which will require investors to be watchful and cautious of their investments in XRP.