XRP validates bullish pennant as lawyer weighs in on SEC's appeal against Ripple

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos


  • XRP's strong resilience against the wider crypto market decline was strengthened by increased buying activity across retail and institutional investors.


  • SEC's delay in filing opening brief in appeal over Ripple vs SEC ruling is a normal occurrence in litigation processes.


  • XRP could rally to a new all-time high above $4.50 but faces a key resistance hurdle at $2.90.


Ripple's XRP maintained a green outlook on Monday, rising more than 4% in the past week while other assets experienced a decline. Despite the positive price momentum, a retired securities lawyer noted that the Securities and Exchange Commission's (SEC) delay in submitting its opening brief for the appeal against Judge Analisa Torres' Ripple vs SEC ruling is common during litigation.


XRP investors continue buying activity as lawyer sheds light on SEC's appeal


XRP investment products globally recorded over $41 million in inflows last week, per CoinShares.

The inflows helped the remittance-based token to show resilience last week despite the lackluster performance of other top crypto assets. On the weekly timeframe, only XRP trades in the green among the top 20 cryptocurrencies by market capitalization.


The price performance is supported by XRP net outflows across top exchanges. Unlike crypto ETFs, outflows in exchanges signify rising bullish momentum and vice versa for a decline. In the past week, exchanges like Binance, Bybit and OKX have recorded XRP outflows of $82 million, $63 million and $59 million. However, US-based XRP investors seem more cautious in their behavior as Coinbase recorded over $65 million in inflows.


XRP Exchange Net Flows

XRP Exchange Net Flows. Source: Coinglass


Meanwhile, attention has turned to the January 15 deadline for the SEC to file its opening brief for its appeal against Judge Analisa Torres's final ruling in the Ripple vs SEC case. While XRP community members have suggested that the agency may not continue with the appeal since it has failed to file an opening brief in the past three months, retired securities lawyer Marc Fagel suggests otherwise.

In an X post on Monday, Fagel clarified that it's normal for lawyers to delay filing a brief until it's due.


"In 30 years of litigation, the number of times I saw a lawyer (private or public sector) file a brief before it was due was roughly zero," wrote Fagel. "That's not the SEC; that's just litigation."


He also added that a new SEC administration could vote to dismiss the appeal even if the agency files a brief on January 15, but it would be a "highly unusual move."


SEC Chair Gary Gensler and Commissioner Caroline Crenshaw are expected to depart the agency on January 20 following Donald Trump's presidential inauguration. Trump has nominated former pro-crypto SEC Commissioner Paul Atkins to take over the reins from Gensler.


XRP could rally more than 80% after breaking above bullish pennant


XRP has seen $20.83 million in futures liquidations in the past 24 hours, with liquidated long and short positions accounting for $13.55 million and $7.28 million, respectively, per Coinglass data.


Over the weekend, XRP broke above the upper boundary of a bullish pennant that has been developing since the beginning of December.

If XRP sustains the breakout and holds the pennant's upper boundary as a support level, it could rally above $3.55 to set a new all-time high near $4.5 in the coming weeks.


XRP/USDT 8-hour chart

XRP/USDT 8-hour chart


However, it has to clear the $2.90 resistance hurdle — its highest price in the past six years.

A decline into the pennant could see XRP test its lower boundary support line near the $2.00 psychological level.


The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) are above their neutral levels, indicating dominant bullish momentum.

A daily candlestick close below the $1.96 support level will invalidate the bullish thesis.

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
XRP Price Attempts a Turnaround—Can It Break Free from Resistance?XRP price tested the $2.280 zone and recently corrected some losses. The price is now facing hurdles near the $2.50 and $2.60 levels. XRP price started a recovery wave from the $2.280 zone. The price
Author  NewsBTC
2 hours ago
XRP price tested the $2.280 zone and recently corrected some losses. The price is now facing hurdles near the $2.50 and $2.60 levels. XRP price started a recovery wave from the $2.280 zone. The price
placeholder
Ethereum Holds ‘Bounce Or Die’ Level: Rebound To $4,000 Could Be NearAmid the market corrections, Ethereum (ETH) has retested a key multi-year support level, suggesting that a bounce to $4,000 could be near. However, some market watchers noted that ETH has tapped an
Author  NewsBTC
2 hours ago
Amid the market corrections, Ethereum (ETH) has retested a key multi-year support level, suggesting that a bounce to $4,000 could be near. However, some market watchers noted that ETH has tapped an
placeholder
Dogecoin (DOGE) Drifts Sideways—Will Bulls Step Up to the Challenge?Dogecoin started a recovery wave above the $0.250 zone against the US Dollar. DOGE is now consolidating and might face hurdles near $0.2655. DOGE price started a recovery wave above the $0.2500 and
Author  NewsBTC
2 hours ago
Dogecoin started a recovery wave above the $0.250 zone against the US Dollar. DOGE is now consolidating and might face hurdles near $0.2655. DOGE price started a recovery wave above the $0.2500 and
placeholder
Bitcoin Price at a Crossroads: Will It Smash Resistance and Climb?Bitcoin price is consolidating above the $96,200 support zone. BTC is showing a few positive signs and might attempt to rally above $99,000. Bitcoin started a decent recovery wave above the $95,000
Author  NewsBTC
5 hours ago
Bitcoin price is consolidating above the $96,200 support zone. BTC is showing a few positive signs and might attempt to rally above $99,000. Bitcoin started a decent recovery wave above the $95,000
placeholder
Bitcoin Difficulty Jumps 5.6% To Set New Record: What’s The Cause?On-chain data shows Bitcoin just got harder to mine as the network Difficulty has witnessed an increase during the latest adjustment. Bitcoin Difficulty Has Just Set A New All-Time High According to data from CoinWarz, the Bitcoin Difficulty has gone up in the most recent adjustment. The “Difficulty” here refers to a feature on the […]
Author  Bitcoinist
5 hours ago
On-chain data shows Bitcoin just got harder to mine as the network Difficulty has witnessed an increase during the latest adjustment. Bitcoin Difficulty Has Just Set A New All-Time High According to data from CoinWarz, the Bitcoin Difficulty has gone up in the most recent adjustment. The “Difficulty” here refers to a feature on the […]
Real-time Quote