Ripple is up by 2 percent in today’s trading session. The cryptocurrency has also been in a three-day bull run. However, the prices are still below the June 3 opening price level, when Ripple went down by almost 4 percent. This means that, despite the recent signs of recovery, Ripple has continued to trade in a sideways market that has been characterized by days of consecutive gains followed by a massive drop in the price of the cryptocurrency.
Since December 21, 2020, Ripple Labs, its executives, and the U.S. Securities and Exchange Commission (SEC) have been in a legal battle involving accusations by the SEC that the company, Garlinghouse, and executive chairman Chris Larsen were involved in an illegal securities offering through sales of XRP.
The lawsuit from the SEC resulted in the XRP being delisted from platforms such as Coinbase and hindered what could have been a bull period for the cryptocurrency. The case will continue tomorrow after Judge Sarah Netburn ordered SEC and Ripple Labs to convene for a June 7 conference, which will focus on Hinman’s speech docs and claims of attorney-client privilege.
The case, which is still ongoing, is predicted to have far-reaching consequences for the cryptocurrency industry, regardless of which side wins. If the SEC wins, it is likely that we will see a drop in the price of XRP. There is also a likelihood of the cryptocurrency getting delisted in major exchanges.
However, a win will see Ripple Labs put aside one of the issues that has affected its growth for years. In an interview with CNBC, Ripple Lab CEO Brad Garlinghouse has already indicated that the platform would be imploring an IPO after the SEC lawsuit ends after the case.
The chart below shows that prices are up by over 2 percent in today’s trading session. However, the chart also shows that the prices have been in a long-term sideways market, with the prices trading within support and resistance levels of $0.37 and $0.45 since May 12.
Therefore, my Ripple price prediction expects the prices to continue trading in the sideways market. As a result, there is a high likelihood that the current strong push to the upside in the past three consecutive trading sessions will be wiped out by a strong bear move in a single trading session.
However, if the prices push past $0.45 or below $0.37, it will mean a bullish or bearish trend has been established, respectively. It will also mean my sideways analysis has been invalidated. Finally, it will also signal an end to more than three weeks of Ripple trading sideways.
This post was last modified on %s = human-readable time difference 10:52