XRP Rally Sparks Optimism for Crypto Industry; Litecoin and Ripple Forecast Market correction, but Long-Term Impact Looks Positive
Zug, Switzerland. – March 29, 2023. The forecast for the global crypto market over the coming 24 hours is very bullish with some upside potential, as investors speculate that a summary judgment in the US regulator’s ongoing lawsuit against XRP is imminent, according to ATTMO, a weather-inspired crypto AI forecasting tool.
A ruling in XRP’s favor will have a favorable long-term impact on the entire crypto industry, as it will end years of regulatory uncertainty. This is now being priced into the price of cryptocurrencies and bodes well for Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Avalanche (AVAX) and Binance (BNB).
The forecast is even more bullish for Litecoin (LTC) and Ripple (XRP) over the coming day, though here a market correction lies ahead, ATTMO data show.
Over a one-week horizon, a market correction is however likely for both major cryptocurrencies – Bitcoin and Ethereum, according to the ATTMO forecast. A market correction for XRP is also forecast. Analysts expect investors to start cashing in on their gains.
XRP rallied 11.3 percent on rumors that its owner Ripple will be able to settle an ongoing court case with the US Securities and Exchange Commission (SEC) as early as this week. The lawsuit has been dragging on since 2020.
The SEC claims that XRP is a security and falls under SEC’s jurisdiction rules. XRP claims its products are commodities, which fall under the jurisdiction of the Commodity Futures Trading Commissions. The judge’s ruling will end the regulatory uncertainty surrounding which crypto assets are traded in the US and is set to have a wide-ranging impact on the entire crypto universe. Why? Commodities are taxed more favorably and regulated less stringently than securities. It’s much more expensive to ensure that securities comply with all regulations in place.
”Looks like the rest of the crypto market has decided to join the XRP party... Everything is going green,” writes the tweeter @XRPMillionaire. Some experts go as far as predicting that XRP will skyrocket if it wins the court battle against the SEC.
Yesterday, the price of Bitcoin rose 3.6 percent, while that of Ethereum increased 4.3 percent. The combined market capitalization of the two cryptocurrencies makes up 63 percent of the crypto space.
Among smaller currencies, Binance recouped some of the past week’s losses and added 2 percent. The US Commodity Futures Trading Commission (CFTC) sued the crypto exchange and its CEO Changpeng Zhao (known as CZ) on Monday claiming they violate the country’s derivates trading rules.
Investors will focus on the latest euro area inflation figures when these are released on Friday. Year-on-year, the euro area’s March inflation is set to slow by 7.2 percent, according to the analyst consensus. Core inflation is, however, seen edging higher to 5.7 percent year-on-year. These figures will indicate whether the European Central Bank (ECB) will continue to raise its key rate at its upcoming meeting on May 4.
Last week, the ECB’s head Christine Lagarde reiterated that further rate hikes were looming if the inflation rates do not slow. The euro area’s inflation reached 8.5 percent in February, far above the ECB’s 2 percent target.
Critics argue that continued rate hikes will have a negative impact on the European economies, which reel from the ongoing uncertainty in the banking sector. Some analysts fear additional bank failures if rates keep rising. Rising interest rates make riskier assets such as cryptocurrencies less attractive to hold, as investors can hold less risky assets such as bonds with a higher return.
Overseas, the release of the US personal consumption expenditures price index (PCE) on Friday will also indicate whether the inflationary pressure continues. The PCE captures inflation across a wider range of consumer expenses than traditional inflation (CPI) data. Analysts expect the PCE to edge lower to 5.3 percent in February, compared to 5.4 percent the previous month.
These forecasts are not trading advice; they are only decision-support tools. They do not include information that is specific to the user; in particular, they do not account for their personal risk appetite or market assessment.
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