XRP has outperformed all major cryptocurrencies on the market after a tumultuous week. The token has risen more than 5% since Monday, breaking its downtrend since late February from above $0.4137.
XRP is trading at $0.3963, making it the only crypto in the top 10 digital assets with gains last week. According to Glassnode data, XRP has seen only $3.5 million in liquidations in the last 24 hours, $2.5 million of which were short liquidations, highlighting the strength of the token’s uptrend since early March.
XRP faces a major resistance wall at the $0.40 level; if the token manages to break its nearest obstacle, it will represent a short-term victory for XRP bulls and break the downtrend channel pattern.
Is A Bull Rally On The Way For XRP?
Despite the recent statements by Federal Reserve (Fed) Chairman Jerome Powell in his mission to control inflation, which can affect stocks and crypto assets in the medium term as the institution raises interest rates, XRP is unaffected by the worrying news from a macroeconomic perspective.
On the other hand, the token, which serves as a component for the XRPL settlement layer and facilitates payment transactions on its network, has broken the correlation with Bitcoin. This cryptocurrency is in a downtrend after seeing massive selling pressure in recent weeks, which has resulted in a path for digital assets to crash toward lower levels.
According to the trader and chart analyst, who goes by the pseudonym EgragCrypto, XRP has reached a milestone; after a long period of consolidation and uncertainty from investors, the token managed to turn the Fibonacci channel 0.86 from a major resistance to support.
As seen in the above chart, the current price of the token represents solid support. If the bulls hold and consolidate the price, they can push the token above its major resistance in the medium term at $0.4235.
This support can act as a threshold for the bulls as there is a major resistance ahead; if it is not broken, the 0.86 Fibonacci channel will be a crucial level to watch. If the price falls below the current channel, traders may see a downtrend to $0.3.
Ripple CEO Claims The SEC Lacks Infrastructure For “Registered Tokens”
The Securities and Exchange Commission (SEC) and Ripple, the company that created the XRP Ledge, have an open court case in the U.S. Southern District of New York. According to several experts, this action could decide the future of crypto assets and whether or not XRP is a security under SEC rules.
In a Twitter post, Ripple CEO Brad Garlinghouse stated that the SEC does not have the legal framework to classify a token as a security. The regulator lacks clarity on the crypto industry, according to the executive.
Garlinghouse added that the SEC has declared “war” on the industry and that the regulator should create a framework and set guidelines for the crypto ecosystem. Ripple’s CEO also concluded:
If you want to regulate, then regulate. Put in the hard work to build a framework and set guidance, as so many other G20 countries are already doing. The 27 EU member countries can agree on a set of rules with MiCA…what’s stopping the US?!
Currently trading just below the $0.4 mark, XRP has gained 5% in the last 24 hours. The token has seen gains in a broader time frame thanks to its uptrend. Over the past seven and fourteen days, XRP has posted gains of 5.1% and 1.7%, respectively, with a market cap of $20 billion.
Feature image from Unsplash, chart from TradingView.com