Where Is The XRP Price Heading As Perp Open Interest Doubles?March 31, 2023
The XRP price has been on an extremely strong rally over the past 11 days, rising more than 56%. The sudden awakening of the price from a months-long consolidation phase comes in light of rumors that a decision in the legal battle between Ripple Labs and the US Securities and Exchange Commission (SEC) could be imminent.
Even renowned trader Peter Brandt has published an analysis on the XRP price recently, although he doesn’t actually like the cryptocurrency, to put it nicely. However, Brandt has spotted an extremely rare chart pattern that could propel the price to $3, as NewsBTC reported.
Recent data from Kaiko, a leading source of cryptocurrency market intelligence, shows that futures traders are also getting bullish on the XRP price. Kaiko shared the chart below today and stated:
XRP perpetual futures open interest more than doubled this week on bets that a possible victory in Ripple’s lawsuit against the US SEC will trigger an alt season.
Crypto analyst Tara stated in her latest XRP tweet that she initially expects some consolidation following the strong rally. Using the ABC wave theory and Fibonacci retracement levels, she predicts that XRP will first fall towards $0.49 before new highs are possible.
XRP bounced off of our first buy target at $.529! I have the full ABC as shown below. We’re currently at Wave B ($.557). Wave C is now landing perfectly on the 382 fib which is our second buy target at $.494!
A Damper For The XRP Price?
Whether a ruling will be made soon in the court case between Ripple and the SEC is pure speculation. XRP Community attorney John E. Deaton had expressed several times in recent weeks that he expects a ruling by the end of April. The basis for his assumption are the previous rulings of judge Analisa Torres.
However, a settlement between Ripple and the SEC seems far from reality at the moment, as Bill Morgan, another lawyer from the community noted today. Morgan is referring to a tweet from Ripple CEO Brad Garlinghouse, in which he again attacks the SEC harshly. Garlinghouse writes:
For the Chair of the SEC to assert that he dictates what is a security – and not the legislation from which his agency derives its power – is beyond comprehension. It’s time for elected officials in the US to take notice.
When you behave like an autocrat running a $2.2B bloated agency, why would you ever want to provide clarity about what’s “in or out”? Without clear jurisdiction, ambiguity masquerades as power. Read that again.
According to Morgan, the never-ending criticism of the SEC by various Ripple executives suggests that the company does not plan to settle with the regulator.
“I guess [Garlinghouse] and Stuart Alderoty hammering the SEC and Gensler in recent tweets means you are not about to sign a settlement agreement, in which case hammer away,” Morgan asserted.
Meanwhile, the XRP price was trading at $0.5316 at press time, trying to hold the first support around $0.53. If this breaks, the most crucial support will be at $0.49.
In the short term, today’s release of the PCE in the US (8:30 am EST) could decide the direction of the next movement of the price. However, in the medium term, the outcome of the litigation and expectations about it are likely to be the main price drivers in April.
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