XRP, the native token of the XRP Ledger, could soon see a breakout from its current level around $0.53 after the US House of Representatives passed landmark cryptocurrency legislation and ahead of the end of Ripple’s legal battle with the U.S. Securities and Exchange Commission (SEC).
That’s according to popular pseudonymous cryptocurrency analyst Dark Defender, who pointed to the landmark cryptocurrency regulation bill the US House of Representatives passed this week, Financial Innovation and Technology for the 21st Century Act (FIT21).
The proposed legislation is poised to create a framework for the regulation of the cryptocurrency market in the US, including implementing consumer protections, designating the Commodity Futures Trading Commission (CFTC) as the primary regulator for digital assets, and outlining explicit responsibilities for both the CFTC and the SEC. Furthermore, it aims to provide a more distinct classification of a cryptocurrency as either a security or a commodity.
The bill has garnered strong support from the cryptocurrency industry with the Crypto Council for Innovation, a consortium of entities and companies in the sector, such as Coinbase, Kraken, Andreessen Horowitz, and the Digital Currency Group, along with 50 other organizations, writing 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.
The analyst used technical analysis tools like Fibonacci Time Zones and Elliott Wave Theory, to project a significant price increase for XRP before July, suggesting the recent bill, and the entrance of institutional investors in the space through spot exchange-traded funds could further bolster XRP.
The analyst also suggested that Ripple’s legal battle with the U.S. Securities and Exchange Commission, which started after the regulator sued the fintech firm and two of its executives alleging they “raised over $1.3 billion through an unregistered, ongoing digital asset securities offering,” could soon end.
Notably, the analyst has earlier this month suggested XRP’s price could soon explode to as much as $18 after identifying a bull flag pattern on the XRP/USD chart.
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 analyst noted. The consolidation period, marked by converging red and blue trendlines, forms a triangle – a technical indicator often interpreted as a precursor to a breakout.
Featured image via Unsplash.
