Ripple’s cross-border settlement token, XRP, has lately been on a short-term relief rally, although experiencing a complete roller coaster ride this year. Since the onset of the Securities and Exchange Commission (SEC) vs. Ripple case in December 2020, the price of XRP has reacted profusely to the latest happenings inside the courtroom. The altcoin is now consolidating around the $0.35 level, as the crypto community awaits the final outcome of the lawsuit.
XRP Price In Danger Zone?
However, according to crypto expert Ali Martinez, who goes by the username @ali_charts on Twitter, is of the opinion that the XRP’s price might experience a halt in its rally due to a certain technical indicator. Ali points out that the TD (Tom Denmark) Sequential, which is an instrumental tool designed to identify the exact time of trend exhaustion & price reversal — is indicating a strong “sell signal” on XRP’s four-hour price chart.
He also made the observation that investors should be expecting a bearish pattern for XRP, the 6th largest cryptocurrency, due to the formation of a bearish divergence against the Relative Strength Index (RSI).
#Ripple | The TD Sequential presents a sell signal on $XRP four-hour chart while a bearish divergence forms against the RSI.
The bearish formation anticipated a one to four candlesticks correction for #XRP. pic.twitter.com/nuoQ5XRYhY
— Ali (@ali_charts) December 27, 2022
Lawsuit Verdict To Set Precedent
In point of fact, despite the recent price increases, the underlying value of XRP will mostly be determined by the outcome of the continuing dispute between Ripple and the SEC. The lawsuit is heating up after the regulator filed a motion to seal certain documents following the completion of the final submissions made by both parties to the case.
Read More: Will Ripple’s XRP Price Pump To $1 In The Massive 2023 Rally?
Well-known cryptocurrency analysts anticipate major price movement in XRP in the event that the legal dispute is resolved favorably. Recently, a legislator and congressional candidate in the United States named January Walker highlighted the relevance of the possibility that Ripple could outmaneuver the SEC in the continuing fight.
If Ripple settles it will be a loss for the whole world & WEB3.
— January Walker (@UtahPolitician) December 12, 2022
XRP Flips BUSD In Market Value
Besides the legal uncertainty, XRP recently flipped BUSD to clinch the 6th spot by market cap. This comes at a time after massive whale activity was observed, with the number of XRP whales & shark addresses holding 1 million to 10 million tokens hit a new all-time high recently.
Currently, as per CoinMarketCap, the price of XRP is trading at around $0.37, with a 0.14% increase in the past one hour and a whopping 7% gain recorded in the last seven days, at the time of writing.
Also Read: Popular Crypto Influencer Picks His Top 3 Cryptos For 2023 Bull Run
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