The anticipation surrounding the release of the Hinman documents has stirred up the crypto market, with XRP showing a 2.2% increase in value to trade at $0.5281. As a token powering the leading cross-border payments network, Ripple, the release of these documents has been hailed as “well worth the wait” by Ripple CEO Brad Garlinghouse.
For those unaware, the Hinman documents contain a speech made by former SEC director, William Hinman, in 2018, in which he highlighted Bitcoin and Ethereum as having the potential to evolve beyond securities into commodities if they achieve adequate decentralization. The SEC has tried to keep these documents under wraps, but Ripple Labs Inc. and XRP enthusiasts believe their release would provide valuable insight into the determination of the SEC’s lawsuit against the company and its top executives.
The lawsuit, filed in December 2020, alleged that XRP was sold to investors as an unregistered security, which violates the US Securities Exchange Act. Ripple has staunchly defended itself against these allegations, leading to a lengthy court battle.
With the possibility of a 45% price movement to $0.8, XRP’s price trajectory significantly depends on the reaction to the release of the Hinman documents. On the other hand, there is a potential downside if the short-term support at $0.5 doesn’t hold up, possibly leading to losses extending to $0.44.
The XRP/USD daily chart hints at the formation of a crucial cup and handle pattern. If validated by breaking above the neckline resistance at $0.55, XRP would be in a better position to push towards higher levels, starting with $0.8 and later reaching $1. This bullish breakout would coincide with a spike in volume, riding on the momentum ahead of the Hinman documents’ release.
However, such a market can be volatile, and traders should exercise caution. The Moving Average Convergence Divergence (MACD) indicator presents a slightly bearish outlook, which speaks volumes about the need for vigilance.
In conclusion, the release of the Hinman documents has the potential to significantly impact the crypto market, particularly when it comes to XRP and Ripple. The market’s reaction will ultimately determine the token’s fate, with the possibility of both gains and losses on the horizon. As always, investors should carry out thorough market research before venturing into cryptocurrency investments, ensuring they fully assess the potential risks involved.
Source: Coingape
