The Ripple price tilted upwards on Tuesday morning as investors continued focusing on the SEC vs Ripple case. The XRP token rose to $0.7740, which was higher than the overnight low of $0.7284. This price is about 13% above the lowest level this month, bringing the coin’s market cap to about $32 billion. Other coins like Bitcoin, Ethereum, and Solana have been rangebound in this period.
The biggest catalyst for the Ripple price is the lawsuit that is continuing in the United States. On Monday, the SEC had another setback after the judge overseeing the case decided to deny a motion to clarify the content of several emails and internal communications the agency made a few years ago. This was seen as another victory for Ripple and XRP.
Ripple Labs and its executives believe that internal communications of SEC officials will help them build their case against the agency. The SEC has been using the so-called Howey test to argue that most digital assets were in fact securities that fall under its supervision. The test states that an investment contract exists if there is an investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others.
Ripple is banking on SEC’s internal communication and a speech made by William Hinman, an official to argue its case. These communications show that the SEC was also unsure about the classification of Ripple, Ethereum, and other assets. Regardless of how the case goes, analysts believe that the outcome will be bullish for XRP price. The most likely scenario is where Ripple wins the case or is asked to pay a fine.
The daily chart shows that the XRP price made a strong recovery in the overnight session. The pair managed to move slightly above the 25-day and 50-day moving averages while the MACD has moved slightly above the neutral line. It has also moved slightly above the 38.2% Fibonacci retracement level.
Therefore, there is a likelihood that the Ripple price will keep rising as bulls target the 50% retracement level at $0.7963. A drop to the support at $0.7266.
This post was last modified on Apr 19, 2022, 07:27 BST 07:27