Cryptocurrency

XRP price tags 10-month high — Can a 35% pullback be avoided?

XRP (XRP) outperformed its top-ranking crypto rivals over the past 24 hours while reaching the highest price in 10 months. 

XRP price tags 10-month high

On March 29, XRP’s price surged by nearly 15% to $0.58, its highest level in ten months, outperforming Bitcoin (BTC) and Ether (ETH) in the past 24 hours that rose around 4.5% and 2.75%, respectively.

XRP/USD daily price chart. Source: TradingView

The Commodity Futures Trading Commission (CFTC) referred to Bitcoin, Ether, and Litecoin (LTC) as “commodities” in its court filing against Binance. While the U.S. regulatory didn’t name XRP, many assumed the token would be categorized as a commodity.

Related: Here’s why CFTC suing Binance is a bigger deal than an SEC enforcement

The lawsuit will likely conclude by the end of March, with legal experts believing Ripple has a chance to win. XRP price has rallied 45% month-to-date on similar hopes, including the March 29 price rally, supplemented further by investors’ optimistic interpretation of the CFTC court filing.

35% XRP price correction ahead?

XRP’s price rally brought it closer to the breakout target of $0.60. However, the possibility of a big correction after the SEC vs. Ripple ruling as a “sell the news” event remains.

Related: Why is XRP price up today?

Technical indicators also show the XRP/USD pair facing the upper trendline of its prevailing rising channel. Thus, a correction toward the lower trendline is now in play, with the downside price target around $0.38 in April, down 35% from current price levels. 

XRP/USD daily price chart. Source: TradingView

On a broader timeframe, the rising channel appears like a bear flag, a bearish continuation technical indicator.

XRP/USD weekly price chart. Source: TradingView

The completion of the flag pattern could see XRP price falling to $0.189 by June, down over 65% from current price levels

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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