Source: PaxForex Premium Analytics Portal, Fundamental Insight
The cryptocurrency sector continues to struggle in 2023 as many cross-currents push and pull price action in either direction. While many traders focus on Bitcoin and its inability to break above 30,000, Ripple continues to score victories in its legal battle against the SEC. After winning its lawsuit in July, the SEC has appealed the ruling. Last week, United States District Court Judge Analisa Torres rejected the SEC appeal. The SEC has more avenues to explore, and the fight between Ripple and the SEC will drag on until the US regulator exhausts all options. Until then, traders can cheer positive developments but should keep their attention on the next SEC move and also look at how the SEC might change regulation if they must concede defeat.
Rather than solely focusing on the SEC lawsuit, the most bullish development for Ripple and the XRP/USD in 2023 might be its integration with SWIFT Go. It is not the only cryptocurrency project, as Solana joined the integration process, and 600+ banks have signed up to use Swift Go. US FinTech company Fiserve has also joined Swift Go as a partner, broadening the reach of the network and the potential client base using Ripple for cross-border transactions in real-time, and at low costs.
Completing the most recent bullish developments for Ripple is the announcement by developers about the completion of extensive testing of the XLS-30 AMM amendment. It will enable automated trading to the XRP Ledger for swaps, trading, and liquidity provisioning. It shows that Ripple, despite its legal challenges, continued to take the necessary steps to advance its vision. The most recent dip in price action offers long-term hodlers an excellent buying opportunity with limited downside potential.
The forecast for the XRP/USD remains bullish after this cryptocurrency pair ended its sell-off inside its horizontal support area, from where it began to drift higher. Following a bullish crossover, the Tenkan-sen and the Kijun-sen have flatlined, suggesting more volatility. The Ichimoku Kinko Hyo Cloud could narrow after the Senkou Span A shifted higher and the Senkou Span moved lower, which confirms a power struggle between bulls and bears ahead. Traders should also monitor the CCI in extreme oversold territory. This technical indicator has recorded three higher lows, which is a bullish development that could move price action higher this year. Can bulls maintain control over the XRP/USD and pressure this cryptocurrency pair into its horizontal resistance area? 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 0.4820 to 0.5140 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.4935
- Take Profit Zone: 0.6300 – 0.6700
- Stop Loss Level: 0.4560
Should price action for the XRP/USD breakdown below 0.4820, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.4560
- Take Profit Zone: 0.3600 – 0.4070
- Stop Loss Level: 0.4820
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