XRP price has broken out of a short-term pattern and could soon break out of a long-term descending resistance line.
The critical court case between the Securities and Exchange Commission (SEC) and Ripple Labs that has captured the attention of the cryptocurrency industry in recent years could soon come to an end.
On September 18, Ripple’s defense attorney, James K Filan, tweeted that Ripple Labs CEO Brad Garlinghouse had filed an early motion for a speedy trial. The next day, Caroline D Pham, commissioner of the Commodity Futures Trading Commission, met with Garlinghouse.
This comes after news that both Ripple and the SEC had asked a judge to settle the ongoing lawsuit.
The crypto community has a mostly positive outlook for the case. some suggest that the price will cross $0.40 if an agreement is reached.
Furthermore, they are optimistic about the possibility of an agreement due to the fact that Ripple Labs argues that there is no investment contract. As a result, the speedy trial motion is considered a smart tactic that could lead to the SEC settlement.
XRP has been following an ascending support line since reaching a low in March 2020. Most recently, the line validated twice (green icons) in June and August. The support line also coincides with the $0.315 horizontal support area, adding to its validity.
After the second bounce, XRP started an upward move and has now reached a long-term descending resistance line, which has been in place since April 2021.
The weekly RSI has broken out of its own descending resistance line, so price is likely to follow suit.
If a breakout occurs, the closest resistance area would be at $0.60.
The daily chart shows that XRP has already broken out of a short-term symmetrical triangle. Subsequently, it managed to reclaim the $0.38 resistance area, which is now expected to provide support.
Also, the daily RSI has moved above 50, a sign that the trend is up.
Therefore, the daily chart supports the daily time frame readings, suggesting that a breakout of long-term resistance is expected.
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