XRP price delicately teeters on the line that could determine whether bulls have a breakout or a sell-off. The sixth largest cryptocurrency with a market cap of $25 billion and a trading volume of $544 is up 0.1% to $0.4759.
Its competitors, such as Bitcoin and Ethereum, are up 0.5% and 0.3% respectively on the day the US Consumer Price Index (CPI) data comes out. The Federal Reserve relies on the CPI and other economic indicators to gauge the level of inflation and adjust monetary policy accordingly.
If the CPI drops to the expected 3% range, risk assets like BTC, ETH, XRP and stocks may finally gain enough momentum to resume interrupted rallies as investors’ risk appetite increases.
The situation could be a little more concerning for the XRP price, especially after LBRY lost the lawsuit against the Securities and Exchange Commission (SEC).
Is an XRP Price Breakout Ahead?
XRP is on the verge of a bullish breakout targeting near-term highs around $0.55. The presence of a bull flag pattern on the daily chart implies that with a small push above the near-term $0.48 hurdle, XRP price could validate the increase.
XRP/USD Daily Chart | Trade view
The 100-day exponential move maintains XRP’s current position by providing support at $0.4730. On the upside, weakening the flag resistance at $0.48 would push the price above $0.50, putting the target at $0.55 within reach.
The bullish outlook in XRP is reinforced by the soon-to-be-confirmed buy signal from the Moving Average Convergence Divergence (MACD) indicator. Traders may want to confirm that the MACD is making a bullish cross before triggering their buy orders.
The Money Flow Index (MFI) shows that more funds are starting to flow into XRP markets. In other words, as inflow volume increases, momentum builds, paving the way for a recovery.
How LBRY’s losing case against the SEC could complicate things for XRP
In a ruling by US District Judge Paul J Barbadoro, LBRY, a cryptocurrency company, was found to have flouted the Securities Act. Rather than prioritize, crypto enthusiasts fear the LBRY lawsuit could further complicate the situation for Ripple.
Judge Barbadoro ruled that LBRY will no longer offer unregistered token securities or participate in the sale of unregistered token securities in addition to a $111,614,000 civil fine. According to Jeremy Hogan, a partner at Hogan & Hogan, it’s possible to see a similar outcome in the Ripple case.
“The final ruling has been made in the SEC v. LBRY case,” Hogan said via a Twitter post. “The judge did not rule on secondary sales (or, unsurprisingly, the Major Questions Doctrine). He ordered further violations and imposed a fine.”
Hogan argues that while such an outcome is possible, “the court should determine that there is not enough for the Fair Notice Defense to pursue a lawsuit on the issue.” In addition, “the court would have to find that past AND current sales of XRP are investment contracts to provide a preliminary provision.”
The injunction would be a BIG problem for Ripple as it would require the sale of escrow. But it’s a problem with a possible solution — just a workaround that could disrupt Ripple’s business plans.
…
No statement about selling on the secondary market is a “status quo” statement.— Jeremy Hogan (@lawyerjeremy1) July 11, 2023
An injunction would be bad news for Ripple, as it would “mandate the sale of escrow”.
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John is a renowned crypto analyst and journalist, providing expert insights into both broad and focused aspects of the digital asset market. As a steadfast reporter, he keeps his audience abreast of the latest crypto news, delving into topics such as price trends, on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the ever-evolving metaverse.
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