Daily Price Outlook
XRP is priced at $0.4868, with a trading volume of $546.21 million in the past 24 hours. Over the past day, XRP has seen a 2.05% increase. It is currently trading 6.30% above its 7-day all-time high of $0.5626 and 13.47% below it. The circulating supply of XRP is 51.99 billion, with a maximum supply of 100 billion.
Pro Ripple attorney John Deaton has identified a legal provision that could have potentially prevented the SEC lawsuit against Ripple.
Deaton highlights the “Safe Harbour” concept, which, if implemented, could have protected Ripple and its decentralized cryptocurrency XRP from regulatory action.
Deaton suggests that this provision could have saved the company millions of dollars and better safeguarded the interests of XRP holders. The delisting of XRP from various exchanges following the SEC’s lawsuit against Ripple has had a negative impact on its price.
However, Deaton believes that the Safe Harbour concept could have addressed legal concerns for companies like LBRY and Ripple, offering better protection for XRP holders.
In a Twitter thread, attorney John Deaton revealed documents relating to a meeting between former SEC director William Hinman and leaders from venture capital firm Andreessen Horowitz (a16z).
Deaton claims that a16z presented Hinman with a lengthy report and a Safe Harbour proposal, which gained support from former SEC Commissioner Hester Pierce.
Although the Safe Harbour proposal initially focused on Ethereum (ETH), Deaton suggests that it could have been applied to other tokens like XRP.
Under this proposal, companies such as LBRY and Ripple would have been given three to five years to meet specific requirements for a token to be classified as a commodity.
The proposal did not materialize due to the former SEC Director’s failure to define a specific percentage threshold. However, Deaton’s provided materials indicate that Hinman considered holding more than 30% to 40% of the shares as “substantial,” potentially influencing the criteria for declaring an asset a commodity.
Following the release of the Hinman documents, XRP’s price experienced a recovery after a significant sell-off in the previous week. The market had doubts about the papers’ potential to support Ripple in its legal battle with the SEC.
Currently trading at $0.4870, XRP saw a 5.8% increase from its recent low of $0.4601, although it remains below its previous range of $0.53.
Thomas Kralow, founder and manager of Kralow Capital, believes that market sentiment surrounding the release of the Hinman documents could drive the XRP price to reach a bullish target of $30 in the near future, just ahead of a critical decision that will determine Ripple’s token’s fate.
XRP/USD Price Chart – Source: Tradingview
XRP/USD – Technical Analysis
From a technical standpoint, Ripple recently completed a significant retracement of 61.8% based on the Fibonacci levels, reaching around the $0.470 mark. The price encountered strong resistance at $0.5426 multiple times, resulting in a noticeable downward movement.
However, there are indications of a potential shift towards a bullish trend. A bullish candlestick pattern formed near the 61.8% Fibonacci retracement level, suggesting an increase in buying pressure and a potential reversal of the downtrend.
If this bullish reversal materializes, the cryptocurrency pair could aim for the next resistance levels at $0.4873 and $0.5051. It’s important to note that other technical indicators on the daily timeframe are sending mixed signals.
The 50-day exponential moving average is acting as a significant barrier around the $0.5044 level, while the relative strength index (RSI) and moving average convergence divergence (MACD) indicators are currently in a neutral zone.
Given these factors, it is advisable to approach long positions with caution above the $0.5053 level and short positions below the $0.4700 level. The breakout from this range will likely determine the future direction of the price, which will be further discussed in the upcoming forecast.
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