Market

XRP up 30% after Ripple clinched a small win over the SEC

Ripple (XRP) price is up almost 30% in less than a week amid positive sentiment surrounding the lawsuit in which the US Securities and Exchange Commission (SEC) said Ripple sold XRP among illegal securities.

Development of the SEC lawsuit vs. ripple

Follow document of the Court, Judge Analisa Torres granted Ripple the right to respond to the SEC Statutory Memorandum in favor of Motion to Strike’s Fair Notice Protection (Motion for Temporary Suspension).

In addition, Judge Torres also ordered the unsealing of three documents related to the SEC vs. Ripple, containing email chains and termination notices from Ripple CEO Brad Garlinghouse and email chains from founder Chris Larsen, such as: Bitcoin Magazine reported.

The market responded favorably to Judge Torres’ orders. Right at the start of trading, XRP price surged nearly 30% from a February 3rd low of $0.058 to a February 7th high of $0.782.

XRP’s bullishness was also bolstered by a note from Jeremy Hogan, partner at law firm Hogan & Hogan, that the SEC vs. Ripple may be heading for a verdict.

“It’s good because we’re entering phase two, ‘everything’ is about to happen.”

XRP’s “Death Cross” Ahead?

The recent buying pressure in the market also comes is retesting the multi-month support trendline as illustrated in the chart below.

Source: TradingView

XRP is currently facing a confluence of resistance in the form of 20-week (green) and 50-week (red) exponential moving averages (EMAs). Meanwhile, the two moving averages appear poised to form a “death cross” if the 20-week EMA breaks below the 50-week EMA – a classic sell signal.

However, a decisive close on high volume above the above EMAs could limit the risk of a death cross sell-off. Furthermore, a sustained rally could see XRP price retest the descending trendline resistance near $1.26, a 50% rise from the current price.

Alexander Mamasidikov, co-founder of crypto wallet service MinePlex, has dismissed warnings of a price drop, claiming that the end of a long battle between the SEC and Ripple will prove price bullish for XRP.

“Pending for the SEC-caused securities status litigation to be resolved this year, current buying volume can be viewed as potentially bullish cumulative to long-term. If the current trend continues, community support could help push XRP to a fresh monthly high of $0.88.”

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.