XRP Poised for Breakout? Analyst Sees Major Move After US Crypto Bill

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As a researcher with a background in cryptocurrency analysis, I believe that the recent passing of the Financial Innovation and Technology for the 21st Century Act (FIT21) by the US House of Representatives could mark a significant turning point for XRP, the native token of the XRP Ledger. The proposed legislation is expected to create a clear framework for the regulation of the cryptocurrency market in the US and provide more distinct classifications of digital assets as either securities or commodities.

The price of XRP, the native currency used in the XRP Ledger, might surge past its current value of around $0.53 following the US House of Representatives’ approval of groundbreaking cryptocurrency legislation. Additionally, anticipation builds as Ripple prepares to face trial against the United States Securities and Exchange Commission (SEC) in the coming weeks.

According to the well-known and anonymous cryptocurrency analyst, Dark Defender, this week the US House of Representatives approved a significant regulation bill for finance and technology in the 21st century, known as FIT21.

As an analyst, I’d rephrase it this way: I analyze that the new legislation will establish a regulatory structure for the US cryptocurrency market. It will introduce consumer safeguards, designate the Commodity Futures Trading Commission (CFTC) as the principal regulator for digital assets, and clearly define each regulatory body’s roles. Moreover, it seeks to bring clarity in distinguishing between a cryptocurrency being classified as a security or a commodity.

As a researcher studying the cryptocurrency industry, I’ve observed a significant surge in support for a particular bill from key players in this sector. The Crypto Council for Innovation, which comprises leading entities and businesses such as Coinbase, Kraken, Andreessen Horowitz, Digital Currency Group, and over 50 other organizations, have penned a letter to the Speaker of the House, Mike Johnson (R-La.), and Minority Leader, Hakeem Jeffries (D-N.Y.). In this correspondence, they passionately advocate for the approval of this bill.

An analyst employed various technical analysis techniques, such as Fibonacci Time Zones and Elliott Wave Theory, to predict a substantial price rise for XRP prior to July. This forecast could potentially be reinforced by the recent legislation and the entry of institutional investors into the market via spot exchange-traded funds.

In accordance with our Elliott Wave analysis, according to Fibonacci Time Zones, it’s time for us to initiate the next phase.

— Dark Defender (@DefendDark) May 23, 2024

An analyst made a recommendation that Ripple’s protracted legal dispute with the US Securities and Exchange Commission (SEC), initiated when the regulatory body filed charges against the fintech company and two of its top executives for allegedly raising over $1.3 billion through an unregistered, continuous digital asset securities offering, might come to a conclusion soon.

Significantly, the analyst pointed out that based on a bull flag formation observed on the XRP/USD chart, they believed XRP’s price might reach as high as $18 within this month.

I’ve observed an intriguing pattern in the financial market data – the bull flag. This pattern emerges when there’s a significant price surge followed by a phase of consolidation. Notably, this pattern manifests itself across various timeframes, such as monthly, quarterly, and half-yearly charts. During the consolidation phase, two trendlines, one in red and another in blue, converge, forming a triangle shape. As a technical analyst, I often view this triangle formation as an indicator of an imminent breakout.

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2024-05-25 08:05