𝗫𝗥𝗣 𝗣𝗿𝗶𝗰𝗲 𝗣𝗿𝗲𝗱𝗶𝗰𝘁𝗶𝗼𝗻 𝗮𝘀 𝗫𝗥𝗣 𝗣𝘂𝗺𝗽𝘀 𝟮𝟬% 𝗢𝗳𝗳 𝗥𝗲𝗰𝗲𝗻𝘁 𝗟𝗼𝘄𝘀 - 𝗛𝗲𝗿𝗲'𝘀 𝗪𝗵𝗲𝗿𝗲 𝗜𝘁𝘀 𝗛𝗲𝗮𝗱𝗶𝗻𝗴 𝗡𝗲𝘅𝘁

 

𝐗𝐑𝐏 𝐁𝐔𝐋𝐋𝐈𝐒𝐇 𝐌𝐎𝐌𝐄𝐍𝐓𝐔𝐌 𝐖𝐀𝐍𝐄𝐒

XRP, the cryptocurrency that powers Ripple's global payments system, was last trading lower by about 3.4% on the day on Wednesday, or by about 1.4% in the last 24 hours.

Wednesday's losses have seen XRP/USD slip back into the $0.37s and under the 21 and 200-Day Moving Averages (DMA) at $0.388 and $0.389, respectively.

XRP is for now finding support at last week's lows in the $0.372 area, but price predictions have become less bullish since the cryptocurrency failed to maintain its late-

November uptrend and to sustain a clean break above its 200DMA.

But XRP is still about 20% above its mid-November lows in the $0.32 region that was posted in wake of the FTX crash.

Technical bullish momentum might have waned, but bulls will be hoping that a "Santa rally" can lift optimism into the year-end, especially if things continue to look favorable for Ripple in its ongoing lawsuit versus the US Securities and Exchange Commission.

𝐏𝐫𝐢𝐜𝐞 𝐏𝐫𝐞𝐝𝐢𝐜𝐭𝐢𝐨𝐧 - 𝐗𝐑𝐏 𝐭𝐨 𝐒𝐮𝐫𝐠𝐞 𝐀𝐛𝐨𝐯𝐞 𝐓𝐡𝐢𝐬 𝐊𝐞𝐲 𝐃𝐨𝐰𝐧𝐭𝐫𝐞𝐧𝐝 𝐨𝐧 𝐅𝐚𝐯𝐨𝐫𝐚𝐛𝐥𝐞 𝐋𝐚𝐰𝐬𝐮𝐢𝐭 𝐎𝐮𝐭𝐜𝐨𝐦𝐞

Analysts think that summary judgment in the Ripple versus SEC lawsuit, where the latter is accusing the former of selling XRP as unregistered securities, could come as soon as the end of Q1 2023. There is also the possibility that the SEC, facing defeat, might want to settle with Ripple at a sooner date.

It seems likely that in the case of a favorable outcome where XRP is not deemed as a security, XRP could quickly surge back to test its September 2022 highs in the mid-$0.50s per token area. This has been a key area of support/resistance going back to June 2021.

A breakout to this area would mark a break above a downtrend that has been capping XRP price action going all the way back to November 2021, when broader cryptocurrency markets saw their post-pandemic peak. That would be a key development technically and could herald the end of the 2022 bear market. Bulls might start targeting an eventual retest of all-time highs near $3.30 per token.

But broader cryptocurrency market conditions will also need to improve if XRP is to get back to record highs. So long as markets remain fearful that an inflation-focused US Federal Reserve might over-tighten with rate hikes, thus potentially sending the US economy into a harsh recession in 2023, risk appetite may remain ropey, limiting crypto's upside potential