As the market expects a potential favorable spot Bitcoin exchange-traded fund (ETF) outcome, the price of ripple (XRP) is rising in tandem with other cryptocurrencies. A legal professional has provided guidance on what to do with XRP tokens in the interim.
Jeremy Hogan on the benefits of keeping XRP in tact for more than a year
Amid the excitement surrounding spot BTC ETFs, the price of Ripple (XRP) is trending upward along with the other altcoins. A legal expert named Jeremy Hogan has cautioned cryptocurrency owners about crypto tax as they position themselves to profit from the anticipated bull run, given the popularity of payment tokens.
The legal expert, a partner at “Hogan & Hogan,” shared advice with investors hoping to boost their tax efficiency during the anticipated cryptocurrency bull market. He said investors needed to think about their tax liabilities on cryptocurrency investments from the perspective of the ownership period.
The price of ripples fills a symmetric triangle with chances that lean upward.
Following a period of price consolidation between $0.5773 and $0.6644, the price of ripple (XRP) has filled a symmetric triangle on a weekly timeframe. XRP is trading above a Bollinger Bands indicator’s midline (20-period simple moving average) at $0.5719. Bulls should take heart from this, as volatility is at its ideal level, as shown by the upper and lower bands’ typical broadening at $0.6970 and $0.4470 levels, respectively.
Notably, there is a greater likelihood of a strong price move in either direction when the bands tighten at a time of low volatility. Furthermore, any current trend may be coming to an end when the bands diverge by an abnormally large amount, which raises volatility.
The Awesome Oscillator (AO) and Moving Average Convergence Divergence (MACD) indicators’ favorable positions support the Relative Strength Index (RSI) view, which highlights the optimistic prognosis and indicates that momentum is increasing.
By changing the $0.6644 resistance to a support floor, increased purchasing pressure above current levels might cause the price of XRP to break over the upper boundary of the triangle.
Before reaching the anticipated $0.7000 target, the price of ripples might continue to rise further north and overcome resistance from the upper band of the Bollinger indicator at $0.6968.
In an extremely optimistic scenario, the gains might continue until the Ripple price reaches the barrier of $0.7515 or, in the most ambitious scenario, tests the level of $0.8516, which was last reached in July 2023.
On a daily basis, the 200-day moving average (MA) and the lower wedge boundary provide strong support for the price of XRP, confirming the bullish thesis. Due to the MA cross between the 200-day MA and the 100-day SMA at $0.6266 and $0.6225, respectively, which has successfully stopped several bearish efforts, the XRP market is clearly seeing significant demand.
The golden cross that was visible on December 29 between the 200-day and 100-day moving averages also painted a positive picture for XRP’s long-term prospects. As the price gets closer to the technical formation’s narrowing end, stronger buyer momentum may cause the price of XRP to break above it, starting a long-term bullish trend.
On the other hand, if the bears are successful, the price of XRP might fall below the weekly support level of $0.5773, which would contradict the dominant bullish thesis in addition to removing the support from the ascending trendline of the symmetric triangle.
The breakdown would open the door for further declines, with the price of ripples probably testing the $0.4615 support floor. In the worst scenario, the price of XRP may hit the Bollinger indicator’s lower band at $0.4471.
Similarly, traders need to be aware that the rising wedge formation is a negative indicator of an impending trend reversal. A long-squeeze might result from an unanticipated breach below the wedge’s lower border, which would set off a cascade reaction.