3 Reasons XRP Price Forecasts a Rally in October

The conclusion of the SEC vs. Ripple Lawsuit was one of the main reasons for XRP price volatility in the first two weeks of August. The recent Ripple market action suggests that the volatility has dried up, leading to a sideways movement. However, the bullish outlook could return in early October if the US Securities and Exchange Commission (SEC) does not file an appeal.

XRP Price Consolidates But Outperforms Key Cryptos

XRP price has been moving sideways for more than 48 hours, and its range is tightening, signaling a decline in volatility. Regardless of the recent rangebound movement, Ripple price performance outshines Bitcoin (BTC) and Ethereum (ETH).

While XRP price outperforms major altcoins, investors should note that this trend could revive in October due to the SEC vs. Ripple lawsuit. 

Will SEC Appeal Against Judge Torres’ Ruling on Ripple Lawsuit?

Many describe the US SEC as using force in matters related to the crypto landscape due to the actions taken against crypto-based companies and developers. Therefore, investors can expect the SEC to file an appeal against the lawsuit ruling and also the secondary sales of XRP to institutional investors.

After the initial ruling on August 7, the regulator has 60 days to file an appeal. If the appeal is not filed after the deadline, the lawsuit will be considered as settled. Such a development would be interpreted as bullish by the speculators and could trigger another impulsive move to the upside for XRP price.

Even if the SEC files for an appeal, many believe the regulator could be unsuccessful. While the short-term outlook of such an outcome could trigger a correction, the mid-to-long-term outlook will likely be bullish. 

Ripple (XRP) Price Analysis

While the long-term outlook for XRP price remains uncertain due to the SEC’s potential appeal, the short-term scenario looks favorable for investors. The ongoing range tightening inside a pennant forecasts a volatile breakout in either direction. However, considering the impulsive move before the range tightening, the probability of this pennant formation’s breakout is skewed toward the bulls.

There are two ways this technical formation could resolve – a bearish breakout leading to an upward move or a direct breakout that pushes XRP price higher.

1. In the first case, a breakdown from the pennant could trigger a 4.5% correction and a retest of $0.568 and $0.573 imbalance within the four-hour demand zone, extending from $0.562 to $0.575. This high probability reversal zone will allow investors to accumulate XRP at a discount. 
2. The second outlook is straightforward, where XRP price pierces the upper trend line of the pennant and flips it into a support level. Such a move could lead to a 9% upswing that retests the $0.643 to $0.657 supply zone if the remittance token manages to overcome the daily resistance level at $0.626. 

If the US SEC fails to appeal after the deadline in October, it could serve as a tailwind and propel XRP price to move beyond $0.6757

On the other hand, if XRP price fails to hold the four-hour demand zone, extending from $0.562 to $0.575, it would signal a weakness in buying pressure. A flip of the $0.575 support barrier into a resistance level could trigger a minor retracement to the $0.556 foothold. 

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Akash Girimath

Akash Girimath is an engineer at core, but is interested in the chaos of the financial markets. Akash is senior report and analyst who also trades cryptos on a regular basis and maintains a small crypto fund for friends and family.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.