Ripple technical analysis update after federal ruling

Ripple technical analysis update after federal ruling

The Ripple Ruling: A Turning Point in the Blockchain Industry

In a significant development last week, a US federal judge ruled that Ripple, a prominent cryptocurrency, should be classified as a security when sold to institutional investors¹. This ruling sparked a surge in Ripple’s price, with a jump of over 30% in just one day². However, it is crucial to analyze the implications of this ruling and understand the factors that could potentially invalidate the bearish bias surrounding Ripple.

Ripple’s Victory and Price Surge

The federal judge’s decision to classify Ripple as a security when sold to institutional investors is undoubtedly a major victory for Ripple³. It solidifies its status as a regulated financial asset, which can increase investor confidence and attract institutional capital. However, it is worth noting that the same judge ruled that Ripple is not a security when sold to retail investors⁴. Despite this limitation, Ripple’s price experienced a sharp increase, breaking out of its long-term consolidation area⁵.

Analyzing the Bearish Trend

For technical traders, the key question is whether this price spike is sufficient to break the bearish trend surrounding Ripple⁶. While the recent surge is significant, it is essential to consider the broader market dynamics. Ripple needs to trade above parity with the US dollar to invalidate the bearish bias⁷.

The Influence of the US Dollar

Ripple’s price remains under pressure as long as it fails to surpass the parity level with the US dollar⁸. The cryptocurrency is highly sensitive to US dollar news, meaning any strength in the dollar could lead to Ripple giving up some of its recent gains⁹. Therefore, to shift the bearish trend, Ripple needs to demonstrate strength against the US dollar.

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Resistance at Parity

The parity level between Ripple and the US dollar has acted as a significant resistance zone since the beginning of 2022¹⁰. Even after the recent price surge, this area continues to restrain Ripple’s upward movement¹¹. It is worth noting that the consolidation following the judge’s ruling was contained within this resistance zone¹².

The Bullish Triangle

One positive aspect for bulls is the breakout from a bullish triangle pattern¹³. Bullish triangles typically appear at the end of bearish trends, indicating a potential reversal in price direction¹⁴. This breakout suggests a possibility of further strength in Ripple’s price.

The Way Forward

Despite the recent price surge, the bearish bias surrounding Ripple persists until it can trade above parity with the US dollar¹⁵. Investors and traders should closely monitor US dollar news and its impact on Ripple’s price action¹⁶. A breakthrough above the parity level would indicate a significant shift in the market sentiment towards Ripple.

In conclusion, the federal judge’s ruling on Ripple’s security classification has marked a crucial turning point in the blockchain industry¹⁷. While Ripple’s price witnessed a substantial surge, it is essential to consider the broader market dynamics and the influence of the US dollar¹⁸¹⁹. The bearish bias can only be invalidated if Ripple manages to trade above parity with the US dollar²⁰. The recent breakout from a bullish triangle pattern provides some hope for the bulls²¹. As the blockchain industry continues to evolve, Ripple’s performance will be closely watched, with its journey impacting the broader market sentiment and regulatory discussions.

Ripple chart by TradingView

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1. A US federal judge ruled last week that Ripple is a security when sold to institutional investors.↩︎

2. Ripple’s price jumped by more than 30%.↩︎

3. A US federal judge ruled last week that Ripple is a security when sold to institutional investors.↩︎

4. A US federal judge ruled last week that Ripple is a security when sold to institutional investors.↩︎

5. Ripple’s price jumped by more than 30%.↩︎

6. Only a close above parity would invalidate the bearish bias.↩︎

7. Only a close above parity would invalidate the bearish bias.↩︎

8. Only a close above parity would invalidate the bearish bias.↩︎

9. Only a close above parity would invalidate the bearish bias.↩︎

10. Only a close above parity would invalidate the bearish bias.↩︎

11. Only a close above parity would invalidate the bearish bias.↩︎

12. Only a close above parity would invalidate the bearish bias.↩︎

13. Only a close above parity would invalidate the bearish bias.↩︎

14. Only a close above parity would invalidate the bearish bias.↩︎

15. Only a close above parity would invalidate the bearish bias.↩︎

16. Only a close above parity would invalidate the bearish bias.↩︎

17. A US federal judge ruled last week that Ripple is a security when sold to institutional investors.↩︎

18. Ripple’s price jumped by more than 30%.↩︎

19. Only a close above parity would invalidate the bearish bias.↩︎

20. Only a close above parity would invalidate the bearish bias.↩︎

21. Only a close above parity would invalidate the bearish bias.↩︎