- The XRP price has been in a strong bearish trend lately.
- It has formed a bearish pennant pattern.
- The SEC vs Ripple case is still ongoing.
The XRP price has continued to consolidate in the past few days as investors react to last week’s crash of Terra and the new normal caused by the Federal Reserve. The market is also focusing on the ongoing SEC vs Ripple case in the United States. Ripple is trading at $0.4310, where it has been throughout this week.
SEC vs Ripple
Most XRP investors are still following the progress of the ongoing Ripple vs SEC case in the US. The most recent update is that Ripple is compelling the SEC to admit that there was no investment contract when it sold XRP tokens to investors.
In a submission to the court this week, Ripple said that it had requested the court to prepare for a new motion about the “fourth set of requests for admission (RFA)” The letter was addressed to Judge Sarah Netburn who is overseeing the case.
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In this case, the SEC alleges that Ripple Labs and its executives raised cash from investors without following securities law. The defendants have denied these allegations and vowed to fight to the end.
Analysts believe that the outcome of the case will be bullish for the XRP price since it is unlikely that the judge will declare the coin illegal. The most severe outcome will likely be a large fine.
While the SEC vs Ripple case is a major catalyst, investors have also been watching the broader issues affecting the market. The most severe one is the new normal by the Federal Reserve. The bank has vowed to continue hiking interest rates and reducing its balance sheet in its battle against inflation.
Further, investors have become more fearful about the market following the recent crash of Terra and its ecosystem.
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XRP price prediction
A closer look at the Ripple price chart shows that it has a close resemblance to that of Bitcoin. The two coins formed a hammer pattern last week as LUNA crashed. Now, the coins have both formed a symmetrical triangle pattern.
When you switch to the daily chart, you realize that this pattern is part of a bearish pennant. Therefore, with the triangle nearing its peak, there is a likelihood that the coin will have a bearish breakout as bears target the support at $0.3500.
