XRP is hoping that the token will see a massive price increase in 2022 based on the assumption that Ripple will win its long-running legal battle against the US Securities and Exchange Commission (SEC).
Hinman docs to rescue XRP bulls?
On September 29, the district judge in the case, Judge Annalisa Torres, ordered the commission to release documents written by William Hinman, a former director of the Securities and Exchange Commission’s treasury division.
Perhaps Hinman wrote that Ether (ETH), the original token of the Ethereum blockchain, is not a hidden document security, as Ripple believes. This is primarily because Hinman announced the same thing in his speech at the Yahoo Finance All Markets Summit in June 2018.
Ripple’s defense may use Hinman’s letter as evidence that the original blockchain token, XRP, should not be treated as collateral, contrary to what the SEC claimed in its December 2020 lawsuit.
XRP has since been removed from many regulated cryptocurrency exchanges, including Coinbase and Bitstamp. As a result, it is now among the top cryptocurrencies that did not recover or hit record levels during the 2020-2021 crypto market boom, reflecting investor caution.
Some would argue that from a technical analysis point of view, XRP is still undervalued compared to other top-rated cryptocurrencies. And Ripple’s victory could change that, as the token surged 20% the day after Judge Torres’ order.
Related Topics: Commodity Futures Trading Commission (CFTC) Commissioner Proposes Desk Focused on Retail Crypto Investors
resistance and convergence
From a technical point of view, XRP is an achievement far from posting a 50% price increase.
In particular, the coin is now testing the confluence of resistance from a single multi-year descending trend line, an inverted support bar and a Fibonacci line – all hovering near $0.57. XRP gains could help XRP decisively break above this confluence.
XRP/USD weekly price chart. Source: TradingView
This break could lead XRP to rise towards the next Fibonacci line near $0.72, up more than 50% from the October price. On the contrary, a pullback could cause XRP to collapse to the previous support level at $0.31, down 35% from today’s price.
“The XRP dollar is basically a lawsuit,” independent market analyst Donalt noted, adding:
“If they win it all with $GigaXRP pumps. If they lose, it will be a good 50% candle. Also, losing XRP in USD will make other cryptocurrencies more vulnerable to attack, so you have to encourage them.”