- XRP, the native token of the XRP Ledger, could soon see a breakout from its current level around $0.53.
- The US House of Representatives recently passed landmark cryptocurrency legislation.
- Popular cryptocurrency analyst Dark Defender highlights the potential impact of this legislation on XRP.
Discover how recent US legislation and Ripple’s ongoing legal battle could influence XRP’s market trajectory.
Landmark Cryptocurrency Legislation Passed by US House of Representatives
The US House of Representatives has passed the Financial Innovation and Technology for the 21st Century Act (FIT21), a landmark bill aimed at creating a comprehensive framework for the regulation of the cryptocurrency market in the United States. This legislation is designed to implement consumer protections, designate the Commodity Futures Trading Commission (CFTC) as the primary regulator for digital assets, and outline explicit responsibilities for both the CFTC and the Securities and Exchange Commission (SEC). Additionally, it aims to provide a clearer classification of cryptocurrencies as either securities or commodities.
Support from the Cryptocurrency Industry
The bill has garnered strong support from the cryptocurrency industry. The Crypto Council for Innovation, a consortium of entities and companies in the sector, including Coinbase, Kraken, Andreessen Horowitz, and the Digital Currency Group, along with 50 other organizations, wrote a letter to the Speaker of the House, Mike Johnson (R-La.), and the Minority Leader, Hakeem Jeffries (D-N.Y.), advocating for the bill’s approval. This collective endorsement underscores the industry’s recognition of the need for regulatory clarity and consumer protection.
Technical Analysis and Market Predictions for XRP
According to popular pseudonymous cryptocurrency analyst Dark Defender, the recent legislative developments could significantly impact XRP’s price trajectory. Using technical analysis tools such as Fibonacci Time Zones and Elliott Wave Theory, the analyst projects a substantial price increase for XRP before July. The entrance of institutional investors in the space through spot exchange-traded funds (ETFs) could further bolster XRP’s market performance.
Ripple’s Legal Battle with the SEC
Another critical factor influencing XRP’s market outlook is Ripple’s ongoing legal battle with the SEC. The regulator sued Ripple and two of its executives, alleging they raised over $1.3 billion through an unregistered, ongoing digital asset securities offering. The analyst suggests that this legal battle could soon come to an end, potentially removing a significant overhang on XRP’s price.
Potential for a Bull Flag Breakout
Earlier this month, the analyst identified a bull flag pattern on the XRP/USD chart, suggesting that XRP’s price could soon surge to as much as $18. The bull flag, characterized by a sharp price increase followed by a period of consolidation, appears across multiple timeframes, including monthly, three-month, and six-month charts. The consolidation period, marked by converging red and blue trendlines, forms a triangle – a technical indicator often interpreted as a precursor to a breakout.
Conclusion
In summary, the recent passage of the Financial Innovation and Technology for the 21st Century Act by the US House of Representatives, combined with the potential resolution of Ripple’s legal battle with the SEC, presents a promising outlook for XRP. Technical analysis suggests a significant price increase could be on the horizon, driven by institutional investment and favorable regulatory developments. Investors should keep a close eye on these evolving factors as they consider their positions in the cryptocurrency market.
