The SEC's appeal of last year's federal court ruling that XRP was not a security has sent shockwaves through the cryptocurrency market, especially the XRP market. XRP prices have fallen by at least 1.2% in the past 24 hours. On September 30, XRP opened at around $0.6405 and fell to a low of $0.5218 by the close of the previous day. In just four days, the market has fallen by at least 22.74%.
SEC appeal is unlikely to trigger XRP bear market. Bobby A used his X account to share his optimistic view on XRP. In his post, he claimed that the SEC's appeal of the federal court's ruling in favor of XRP is not a long-term bearish market signal. The reason is that during the SEC lawsuit in 2020, contrary to popular expectations, the price of XRP actually rose rather than fell.
As can be seen from the content of the post, experts believe that, as was the case during the 2020 lawsuit, the price of XRP will not only not fall, but may rise instead.
Technical indicators point to a major XRP breakout. Bobby’s post serves as a reminder of some important technical indicators, with the Bollinger Bands indicator standing out in particular. When applying this indicator to XRP’s daily chart, it is clear that the huge red candle that appeared on October 2nd pulled the price from the upper Bollinger Bands area to the lower area. The same downward pressure pushed the price out of the Bollinger Bands on the same day.
Yesterday, the price moved further away from the range. Currently, the XRP market is trying to re-enter the range and has almost touched the lower end of the range.
According to Bobby, the current range is the tightest in XRP’s history.
The post also noted that XRP’s price tends to rise quickly after Bitcoin’s halving. The XRP market experienced rapid increases in both 2017 and 2020.
Political factors may affect the future of XRP. Bobby, like most cryptocurrency analysts, seems to be a Trump supporter. Unsurprisingly, his post also mentions the possibility of Gary Gensler being removed as SEC Chairman after Trump wins the upcoming presidential election next month. Like other Trump supporters, he also expects a huge bullish momentum in the cryptocurrency market under the Trump-led US government.
All in all, Bobby’s opinion provides a ray of hope for many, as the XRP market has seen a significant drop following the SEC’s decision to appeal last year’s court ruling in favor of the market.
The article is for reference only and does not constitute investment advice.
