- A US federal judge ruled last week that Ripple is a security when sold to institutional investors
- Ripple’s price jumped by more than 30%
- Only a close above parity would invalidate the bearish bias
Ripple squeezed higher last week following a landmark decision from a federal judge ruling that it is a security when sold to institutional investors. If crypto is a security or not has been the subject of many debates lately.
The ruling is a major victory for Ripple, even though the same judge ruled that Ripple is not a security when sold to retail investors. Nevertheless, Ripple’s price bounced from its long-term consolidation area, up over 30% in one single day.
For technical traders, the question is whether the higher spike is enough to break the bearish trend. As it turns out, bulls will have to push some more for Ripple’s bearish trend to end.
Ripple should trade above parity with the US dollar for the bearish bias to end
Despite the spike higher, Ripple’s price remains under pressure unless it manages to climb above parity with the US dollar.
In other words, it remains sensitive to US dollar news, and any dollar strength should result in Ripple giving up more of its recent games.
However, it would all change if the market climbs above parity. This area has provided resistance since the start of 2022 and still does – after all, it contained the price action following last week’s news.
The good part for bulls is that breakout came at the end of a bullish triangle. The said triangle acted as a reversal pattern, and triangles like these usually appear at the end of bearish trends.
All in all, the bias remains bearish unless more strength leads to Ripple trading above parity. Until then, look for US dollar news to drive the price action.