Summary:
- MagicPoopCannon predicts that Ripple will either win the lawsuit against the SEC or settle out of court
- Either outcome will be beneficial for both Ripple and XRP
- MXRP’s 200-day moving average is crucial to its short term future
- A loss of this trend line will result in further losses for XRP
Popular Bitcoin and Crypto analyst, MagicPoopCannon, has offered his insights on the lawsuit against Ripple by the SEC. According to Magic, Ripple will either be victorious against the SEC or will settle out of court. Furthermore, either outcome will be positive for Ripple and XRP in the sense that it will offer a new beginning for both. Magic’s statement on the matter was as follows.
…it’s my opinion that Ripple will either be victorious, or they will settle with the SEC and continue on with a clean slate.
This could actually be a positive thing, ushering in a new era for Ripple and XRP. If Ripple can get past this baptism (if you will) from the SEC, it will show banks and other financial institutions that Ripple has essentially been deemed fit for business by the SEC.
That would obviously have very positive implications for Ripple, regarding financial institutions who are on the fence about doing business with them for fear of regulatory or legal uncertainty. So, I’m optimistic that Ripple will overcome, and I still believe there is a brightfuture for XRP.
XRP’s 200 Day MA is Crucial to Maintaining an Uptrend
Magic also pointed out that XRP’s 200-day moving average is a crucial support area for the remittance coin and losing it will ultimately lead to more losses.
…we can see that XRP is now below the 200 day moving average (in purple.) If XRP fails to recover above the 200 day, we could see a breakdown of the uptrend, which is still intact.
XRP’s Bull Flag to $1.20 Invalidated by the SEC/Ripple News
Below is a screenshot of Magic’s analysis of the XRP chart courtesy of Tradingview. From the chart, it can be observed that Magic’s earlier identified bull-flag on the XRP chart was invalidated. Furthermore, his $1.20 price target of XRP is no longer viable given the current market environment brought about by the SEC lawsuit.
