Ripple price has bounced back this week as investors react to signs that a settlement with the Securities and Exchange Commission (SEC) will happen. As a result, XRP has risen to $0.7350, about 7.75% above the lowest level this week. This performance has happened as investors predict that inflation may have peaked in the past few days.
The biggest concern among Ripple investors is the ongoing SEC vs Ripple case that is going on in the US. The SEC alleges that Ripple Labs and its executives raised money illegally in 2013. It is one of the most-watched cases in the industry simply because Ripple Labs has refused to settle with the SEC. Instead, it has gathered a team of lawyers, who include former SEC officials like Mary Jo White.
In a statement this week, Ripple announced that it had secured the “biggest decision in the XRP lawsuit” on record. The decision was that the judge denied a request by the SEC to reconsider shielding documents under privilege related to a speech by William Hinman, who was the agency’s director-general. Hinman said that he did not consider “offers and sales of tokens” as securities in the speech. Instead, the SEC claims that the speech reflected his personal views.
Recently, the Ripple price also reacted to another victory by the Ripple Labs. The victory was why the SEC failed to issue a cautionary statement when Ripple raised the funds. Therefore, analysts believe that Ripple will reach a settlement or even win the case. As I have written before, most scenarios will be positive for the XRP price.
The four-hour chart shows that the XRP price declined to a low of $0.6815, which was the lowest level since February 25th. However, the coin is crawling back and moved slightly above the 61.8% Fibonacci retracement level. In addition, oscillators like the MACD and the Relative Strength Index (RSI) have also pointed upwards.
Still, this rebound does not seem strong in my view. Therefore, I suspect that the Ripple price will resume the bearish trend as bears target this week’s low at $0.6815. This means that the rebound is part of a dead cat bounce. A move above the resistance level at $0.75 will invalidate this view.
This post was last modified on %s = human-readable time difference 10:05