- Ripple price has formed a double-top pattern on the 4H chart.
- XRP has done well recently as focus remain on the SEC vs Ripple case.
XRP price has erased some of the gains it made last week as investors continue waiting for the upcoming Ripple vs SEC case in the US. After soaring to a multi-month high of $0.4923 on March 23rd, Ripple has dropped to a low of $0.48, giving it a market cap of over $24 billion.
Ripple vs SEC case continues
The main catalyst for Ripple prices is the view that Ripple Labs and the SEC will know their fate in the coming months or even weeks. A closer look at social media posts shows that some traders believe that the SEC will opt to settle the case, which will be seen as a positive catalyst for the coin.
These stories have not been verified and there is still a possibility that the case could take longer than expected. However, as I have written before, I believe that any judgment will be positive for Ripple and XRP.
For one, it is highly unlikely that the judge will order Ripple and XRP to shut down. Instead, if Ripple loses, the likely situation is that the judge orders the company to pay a fine. On a positive side, the ruling will remove the cloud that has existed in Ripple’s ecosystem for more than two years now.
Read more: How to buy Ripple.
Further, Ripple Labs has already created a strategy for existing if it loses the case. In multiple statements, the company’s officials have hinted that they will seek to leave the United States for more crypto-friendlier countries like the UK or Dubai.
Still, from a fundamental aspect, I remain concerned about Ripple’s claim to be a decentralized cryptocurrency considering that Ripple Labs has a lot of power in the ecosystem. Ripple Labs has the mandate of releasing XRP tokens every month.
The other challenge is that stablecoins seem to be solving some of the challenges that Ripple aims to solve for financial institutions.
XRP price prediction
The 4H chart shows that the XRP price has been in a strong bullish trend in the past few days. Ripple has jumped by over 35% from the lowest level this month. It is also approaching the key resistance level at $0.4932, which was the highest level last week.
Ripple has moved above the 25-day and 50-day exponential moving averages while the Relative Strength Index (RSI) has moved slightly below the overbought level. Therefore, with the coin about to form a rare double-top pattern, I suspect that it will soon have a bearish breakout to $0.4323.
