XRP has a skillful chance of hit $1.fifty in the fourth quarter of 2022 later painting a bullish crossover betwixt its 20-mean solar day and 50-day exponential moving averages (EMA).

The then-called golden cross has appeared multiple times on XRP charts in history. Its last occurrence was on Aug. ten, which followed up with an 80% price rally later, with XRP topping out seasonally at $one.43 before pulling back to the downside.

Similarly, a shut of XRP'southward xx-twenty-four hours EMA above l-day EMA on Feb. iv, coincided with an approximately 400% cost rally afterward. In doing and so, XRP reached a year-to-appointment high of $1.98, farther attesting that the latest golden cantankerous could prompt a similar bullish response from traders.

XRP/USD daily price chart featuring Gold Cross. Source: TradingView

More cues for an upside motion come from a ascent wedge pattern. The upper and lower trendlines of the ascending aqueduct pattern have lately served as resistance and support to XRP's price moves. The cryptocurrency'southward ongoing upside move likewise followed a strong bounciness from the wedge's lower trendline, every bit shown in the nautical chart above.

Thus, XRP'south potential to stretch its rebound toward the wedge's upper trendline seems high. That roughly paints a bullish target of $1.50 for XRP.

Ripple vs. the SEC

The latest bout of buying in XRP markets too came in the wake of a recent SEC v. Ripple lawsuit update.

For the uninitiated, the U.s. Securities and Exchange Commission filed an action against Ripple Labs and two of its executives in Dec 2022, alleging that they raised over $1.3 billion through an unregistered securities offer via XRP tokens.

In response, Ripple Labs has been trying to prove that XRP is a utility token — not a security — based on the former SEC director William Hinman's speech wherein he noted that Ether (ETH), a blockchain token like XRP, is non a security nugget.

The current SEC regime argues that Hinman's opinions were personal. Only based on contempo findings, the U.S. securities regulator may have been lying.

Ripple's legal team recently submitted logs in the court that showed the SEC directing its employees to clarify digital currencies as per the framework provided by Hinman. It could prove that Hinman'south speech was not a mere personal opinion merely an official directive.

Related: Judge rejects XRP hodlers' bid to join SEC against Ripple instance as defendants

Guess Sarah Netburn ruled in favor of Ripple Labs and added the proofs to its "in camera" review.

The ruling came out on Fri, which was followed by a 17% rally in XRP'south price.

Bearish reversal blueprint also in PL

XRP'southward rise wedge is a bearish reversal design. As a consequence, the cryptocurrency's gains in the future could face correction risks if the price breaks beneath the lower trendline.

XRP/USD price chart featuring Rising Wedge breakout setup. Source: TradingView

The potential negative breakout risks sending XRP's cost every bit low equally the maximum distance between the wedge's lower and upper trendline. That would put the cryptocurrency's downside target under $0.65.

The views and opinions expressed hither are solely those of the writer and practice non necessarily reflect the views of Cointelegraph.com. Every investment and trading motion involves take a chance, you lot should conduct your own research when making a conclusion.