The price of XRP, the native token of the XRP Ledger, has recently seen a surge of over 20% to surpass the $0.6 level amid a wider cryptocurrency market recovery, with akey candlestick formation appearing ahead of that surge.
According to popular cryptocurrency analyst Dark Defender, who shared an XRP price chart with his over 100,000 followers on the microblogging platform X (formerly known as Twitter) showing the formation of a weekly bullish hammer candle, the last time XRP’s chart saw this type of formation was in March 2017.
That formation occurred before the price of the cryptocurrency entered a massive 110,000% price rally, breaking out to an all-time high above the $3 mark.
X: #XRP only had this type of weekly bullish hammer candle in March 2017.It was just 3 weeks before the XRP Run. pic.twitter.com/wGujRv8IK8
— Dark Defender (@DefendDark) August 6, 2024
A hammer candlestick pattern, it’s worth noting, occurs when the price of an asset trades lower than at the time of the candlestick’s opening, but rallies within that eriod to close near its opening price.
According to Investopedia, these candlestick patterns usually come after a price decline and as buyers absorb the selling pressure in the market and help the asset’s price recover. They indicate a potential upside price reversal.
As CryptoGlobe reported earlier, a federal judge in New York has ordered Ripple Labs to pay $125 million in civil penalties and imposed an injunction to prevent future securities law violations, leading to XRP’s price surge.
The judge’s decision follows a 13 July 2023 ruling which concluded that Ripple’s direct sale of XRP to institutional clients breached federal securities laws.
However, Ripple’s programmatic sales of XRP to retail clients through exchanges were found not to violate any securities laws. During the case, the SEC’s attempt to appeal this portion of the ruling was unsuccessful.
Fred Rispoli, Senior Managing Partner at Hodl Law, emphasized that this ruling is a major victory for Ripple. Despite the $125 million fine, he noted that Ripple’s gains from the recent XRP price surge offset this amount.
Stuart Alderoty, Ripple’s Chief Legal Officer, remarked that the court dismissed the SEC’s allegations of recklessness and reminded that the case involved no fraud or intentional wrongdoing, nor did it result in any financial harm.
Featured image via Pixabay.
