In the wake of a sideways XRP price action followed by a significant decline after Ripple’s legal victory against the US Securities and Exchange Commission (SEC), a new wave of speculation has emerged, fueled by the astrology-inspired tattoo sported by Ripple CEO Brad Garlinghouse. 

Unveiled during a recent Ripple party held to celebrate the legal triumph on July 13, the tattoo has captured widespread attention, triggering discussions and conjecture about its potential significance.

And as for any “announcement” that people are wondering about, tonight’s event is just a celebration…but I will share my recent addition: pic.twitter.com/q4THzsr4Fp

— Brad Garlinghouse (@bgarlinghouse) September 29, 2023 

Ripple CEO’s Intriguing Tattoo Sparks Speculation

The tattoo, prominently displayed on Garlinghouse’s arm, features a combination of intriguing symbols, including the XRP logo, moon, planets, rocket, and constellations. 

XRP enthusiasts have been dissecting these elements in search of hidden messages and insights into Ripple’s long-term plans. Some interpret the tattoo as a bold statement of confidence in XRP’s prospects. In contrast, others delve deeper into its symbolism, particularly regarding the next anticipated XRP price surge date.

Jeremy Hogan, a prominent lawyer supporting XRP, has taken on the role of decoding the tattoo’s cryptic meaning. According to Hogan, the tattoo’s elliptical shape represents the solar eclipse that will occur on April 8th, as observed from the coordinates 37°46′39″N 122°24′59″W. 

Notably, this elliptical path intersects with the full “moon” when viewed from northern latitudes. Many within the XRP community have embraced this interpretation, considering it a potential indication of an upcoming bull run.

Historical patterns in the cryptocurrency market are worth considering to bolster this hypothesis regarding a potential price surge on April 8 or in the first half of 2024. These patterns lend credibility to the notion that significant events, such as the Bitcoin halving, can influence market trends.

In April, the next Bitcoin halving is expected, marking a reduction in the mining reward for Bitcoin. Past halving events have often coincided with notable price increases for Bitcoin, suggesting a potential positive impact on the broader cryptocurrency market.

Moreover, another crucial factor that could propel XRP to new heights is the possibility of another legal victory against the US SEC. Such a win could restore confidence and open doors for further adoption and usage of the token. 

Although the outcome remains uncertain, these developments contribute to an atmosphere of anticipation within the crypto community.

XRP Price Struggles Below Key Moving Averages

After experiencing a prolonged downward trend over the past three months, the price of XRP has now dipped below two critical levels: its 200-day and 50-day Moving Averages (MAs). 

These MAs have proven to be significant obstacles to the token’s potential for future growth, suggesting the possibility of a retracement or consolidation phase below current price levels.

XRP is trading at $0.5117, positioned below the 200-day MA of $0.5196 and the 50-day MA of $0.5290. These levels now serve as resistance barriers for the token, making it more challenging for XRP to regain upward momentum.

Another noteworthy indicator of the unsuccessful attempt to penetrate upper resistance lines is XRP’s squeeze momentum indicator and ADX. 

The squeeze momentum indicator indicates a downward slump in what was anticipated to be an upward movement, impeded by the resistance barriers. Additionally, the ADX reflects declining buying activity and bullish momentum among investors and bulls.

The future course of XRP remains uncertain, as it is yet to be determined whether the token will succumb again to a wave of selling pressure or remain in a consolidation phase below these critical levels, potentially delaying another uptrend.

Featured image from Shutterstock, chart from TradingView.com  

Despite falling record-high interest rates in the United States, Europe, and the U.K., Bitcoin was relatively steady in September and added 4.7%. At this pace, the coin posted one of the strongest performances since 2012 and 2016, when BTC rose 23.5% and 5.7%, respectively. 

Bitcoin Rose In September Despite Attractive Interest Rates

Trading at around the $27,300 zone when writing on October 3, Bitcoin is up roughly 10% from September lows, and traders are confident that the next leg of higher highs has just begun, considering the strong upswing in late September, which was confirmed in early October, translating to a strong start for Q4 2023.

According to Kaiko, Bitcoin is “firm” even though fund rates are relatively high and conservative investors, including institutions, are drawn by governments offering what the analytics platform says is a “risk-free” yield. For perspective, the United States government raised rates rapidly throughout 2022 and the first half of 2023 to curb surging inflation. 

With every basis point increased, regional banks were strained, with some filing for bankruptcy in Q1 2023. Moreover, capital, which would otherwise flow to crypto, is re-directed to the bond and treasuries market because of the generally high but safe interest rates. 

As of October 3, the U.S. Federal Reserve maintained interest rates between 5% and 5.25%. On the other hand, inflation rose to 3.7% in August after falling steadily after peaking at 8.2% in September 2022–the highest in roughly 30 years. 

Ideally, the Federal Reserve plans to maintain inflation at around the 2% benchmark. As such, with rising inflation, the odds of Jerome Powell, the chair of the Federal Reserve, increasing rates in the next meeting remain high, a move that can significantly impact crypto liquidity and prices of top coins, including Bitcoin. 

In 2022, when the Federal Reserve raised rates, Bitcoin prices tumbled from 2021 highs, sinking below $16,000 in November 2022. Dropping crypto prices adversely affected crypto platforms as top exchanges, including FTX, filed for bankruptcy.

Fitch Downgrades U.S. Treasuries 

U.S. treasuries are often considered risk-free and safe because the government’s credit backs them. This means that the government is committed to paying back the debt and its yield timely and in full. The U.S. government has not failed to repay its debt so far. 

Last August, Fitch Ratings lowered the credit rating of the U.S. government from AAA to AA+. The ratings agency predicted that the situation would worsen over the next three years. Fitch also expressed concern about the deteriorating governance related to fiscal and debt matters over the past few decades.