The Ripple price is closing in on the psychological $1.00 mark after a government watchdog accused the SEC of bias against Ripple Labs.
Ripple (XRP) has added 17% in the last 7-days, with much of the gains coming in the last 24-hours following the news that non-profit watchdog Empower Oversight has filed a lawsuit against the SEC accusing the regulator of unfair treatment against Ripple. The filing claims the regulator acted unfairly by declaring XRP a security whilst taking no action against Ethereum.
The announcement has revived hopes the ongoing case against Ripple labs may end with a favourable outcome for Ripple investors. Nonetheless, XRP is running into considerable overhead resistance, which may limit gains in the near term.
The daily chart shows the Ripple price has closed higher for four consecutive days. On Tuesday, the bullish momentum lifted XRP above the 200-Day Moving Average at $0.946. However, this morning, the price has drifted below the long-term indicator, suggesting a possible rejection. Furthermore, above the 200-DMA, the 50, and 100-Day averages clustered around $1.000 provide additional upside resistance.
Considering the significant obstacles above, I expect the Ripple price to pull back into the $0.800-$0.8300 range in the coming sessions. However, a daily close above the 200-DMA should trigger an extension towards the 100-DMA at $1.028. Furthermore, a daily close above the 100-DMA clears the path towards the November high of $1.349.
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This post was last modified on Dec 22, 2021, 02:38 GMT 02:38