Source: PaxForex Premium Analytics Portal, Fundamental Insight
Bearish pressures on the cryptocurrency sector remain, mirroring global equity markets, confirming its tight correlation. While Bitcoin and Ethereum are set to lead the sector lower, numerous cryptocurrencies provide long-term traders with attractive buying opportunities. Ripple emerged as one candidate presenting fewer downside risks than many crypto assets while offering attractive upside potential. The ongoing SEC lawsuit put it out of favor with many investors and kept traders confined to tight trading ranges, but the tide is slowly turning in favor of Ripple.
Sarah Netburn, the presiding judge over the SEC lawsuit against Ripple, declared the speech by former SEC Director William Hinman is no longer privileged. It follows the release of SEC e-mails by non-profit Empowerment Oversight showing improper conduct by SEC officials, a conflict of interest, and a bias against Ripple. Defense lawyers believe that after the SEC releases internal e-mails, Ripple will win the lawsuit within 90 days. It will result in a watershed moment for the cryptocurrency industry in the US. Regulators remain counterproductive, trailing global counterparts and discouraging investment and progress in cryptocurrencies.
The news would also provide a significant bullish fundamental boost to the XRP/USD and slowly push price action towards the 1.00 level. A new trading range may emerge, but broader gains would be difficult to sustain given broad-based bearishness in the cryptocurrency sector. Traders must remain patient, but a gradual improvement of higher trading ranges can offer a step to gains moving forward. It could also offer swing traders more promising opportunities. Many await the official outcome of the lawsuit before adding Ripple to their portfolio, providing traders who pre-buy the ruling with a promising entry just above 0.7000.
The forecast for the XRP/USD remains bullish following a minor pullback that took this cryptocurrency pair briefly below its ascending Ichimoku Kinko Hyo Cloud, followed by a reversal. Price action now tests support levels from where more upside is likely. The Kijun-sen flatlined, suggesting a lack of short-term bearish pressures, but the Tenkan-sen has resumed its downtrend, pointing toward a potential rise in volatility. Traders should monitor the CCI following its breakout from extreme oversold territory. It may retest the -100 level before accelerating higher, delivering a final buy signal once it crosses above zero. Can bulls maintain upside pressure on the XRP/USD and force price action into its horizontal resistance area hugging the psychological resistance level of 1.00? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the XRP/USD remain inside the or breakout above the 0.6735 to 0.7585 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.7275
- Take Profit Zone: 0.9135 – 1.0030
- Stop Loss Level: 0.6435
Should price action for the XRP/USD breakdown below 0.6735, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6435
- Take Profit Zone: 0.5000 – 0.5480
- Stop Loss Level: 0.6735
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
