While the United States Securities and Exchange Commission’s complaint against Ripple is nearing its final stages, traders’ confidence in the company’s legal victory has caused the Ripple token to witness significant growth over the past month. In addition, now a lot of on-chain (on-chain) to technical indicators show that Ripple can continue its upward trend until the beginning of 2023.
To Report Cointelegraph, 30 days after both sides of the case asked for an urgent ruling on whether the sale of Ripple violated US securities laws, the price of the cryptocurrency increased by 25%. For comparison, Bitcoin and Ethereum have seen their value decrease by 4 and 11% during this period.
Ascending triangle flag pattern
Bull pennants are chart patterns that continue the upward trend, which are formed by price stabilization in a triangle-shaped range after a strong upward movement. In other words, in this pattern, after breaking the resistance (the upper side of the triangle), the price moves along its previous upward trend.
As you can see in the chart below, the bullish triangle flag pattern can be seen on the daily Ripple price chart since late September (early October). In the meantime, the price has tried twice to break through the flag resistance line, which of course was not successful, and we are now expecting a bullish breakout in the coming days.
Theoretically, a breakout of the bullish triangle flag pattern increases the price by the same amount (length) of the previous uptrend. As a result, crossing this resistance line can bring the price of Ripple to the range of $0.63 in the fourth quarter of 2022. This will mean a 35% increase in the price of this digital currency.
Massive accumulation of Ripple
Along with technical analysis, such data shows that investors are piling up the rally.
According to data from Sentiment, the average age of Rapile coins, or the average age of all tokens on the blockchain as measured by purchase price, has been increasing since September. Theoretically, this indicator shows that Ripple investors have consistently held their tokens.
In addition, Ripple’s withdrawal of millions of dollars from Bitstamp, Bitso, and other cryptocurrency exchanges announced by Whale Alert reduces the supply of tokens that can potentially be sold.
Since October 14 (October 22), investors have transferred a total of $126 million of Ripple from exchanges to unknown wallets. In contrast, only $79.99 million of Ripple has been deposited to exchanges in this time frame.
Will Repil win the legal case?
Ripple’s possible ability to win a legal victory against the US Securities and Exchange Commission has formed the basis of analysts’ bullish view of Ripple in the past few months.
One of the main documents of Ripple is the speech of William Hinman, the former director of the Securities and Exchange Commission, at the Yahoo Finance All Markets Summit in 2018. Hinman said at the summit that Ethereum is not a security, despite holding an initial offering (ICO) round to raise capital.
Ripple’s defense is that the Securities and Exchange Commission should treat the “XRP” token like Ethereum. Many believe that this argument will guarantee the company’s victory.
For example, The Digital Trend, one of the authors of the Seeking Alpha platform, said:
The news that the Securities and Exchange Commission’s court rejected the objection to the disclosure of more documents related to Hinman’s speech in 2018, led to a jump in Rapil on September 30 (October 8) and the price of this digital currency increased by 12% within 24 hours. This post-hearing price increase may be just an example of what will happen if Repil wins this case.
Brad Garlinghouse, the CEO of Ripple, predicts that the case will be resolved in the first half of 2023. However, he admitted that it would be difficult to predict the final outcome of the case.