Crypto Legislation Boosts XRP Outlook Amid Pending Legal Decision
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The FIT21 Bill and Its Impact
Cryptocurrency analyst Dark Defender highlighted the impact of the Financial Innovation and Technology for the 21st Century Act (FIT21). This newly passed bill aims to create a comprehensive regulatory framework for the US cryptocurrency market. It includes consumer protections, designates the Commodity Futures Trading Commission (CFTC) as the primary regulator for digital assets, and clarifies the responsibilities of both the CFTC and the SEC. Moreover, it seeks to provide a clearer classification of cryptocurrencies as either securities or commodities.
The bill has received strong backing from the cryptocurrency industry, with support from entities such as Coinbase, Kraken, Andreessen Horowitz, and the Digital Currency Group. A letter from the Crypto Council for Innovation, signed by 50 organizations, urged the House leaders to approve the bill.
Technical Analysis and Institutional Interest
Using technical analysis tools like Fibonacci Time Zones and Elliott Wave Theory, Dark Defender projected a significant price increase for XRP before July. He suggested that the FIT21 bill and the anticipated influx of institutional investors through spot exchange-traded funds could further enhance XRP’s value.
Additionally, Ripple's ongoing legal battle with the SEC, which began after the regulator accused the fintech firm of raising over $1.3 billion through an unregistered securities offering, is nearing a conclusion. This resolution could potentially remove a significant overhang on XRP’s price.
Analyst’s Bullish Prediction
Earlier this month, Dark Defender identified a bull flag pattern on the XRP/USD chart, suggesting a possible surge to $18. This pattern, characterized by a sharp price increase followed by a consolidation period, appears on multiple timeframes and is often seen as a precursor to a breakout.
With the combined effects of new legislation, institutional interest, and a potential legal resolution, XRP investors are watching closely for a potential breakout in the coming months.