XRP price sustained its rally on Thursday with investors betting on the resolution of the Securities and Exchange Commission (SEC) vs Ripple case to provide fuel for more gains. The XRPUSD pair was up by 1.9 percent on the daily chart, trading at $0.610 after building from Wednesday’s gain of 18.3 percent following Federal court ruling by Judge Analisa Torres.
While Ripple was fined $125 million for selling XRP to institutional clients, the judge sided with the company in its sale of the tokens to retail clients through centralised exchanges, stating that it did not violate securities laws.
The fine is substantially smaller that the $2 billion that the SEC had sought when it filed the case against Ripple in December 2020. It is largely seen as a landmark ruling not only for XRP, but also for the wider crypto market. The case has been a key limiter to XRP’s price growth in the last three and a half years, and its resolution could herald a major inflection point for the crypto asset. Ripple CEO Brad Garlinghouse, in a Tweet, welcomed the ruling, stating that “the SEC’s headwinds against the whole of XRP community are gone”.
However, the possibility of an appeal by the SEC is on the cards, which means that the legal battle could still be some way off from a total resolution.
The XRP price has recently been moving sideways on the 2-hour chart as highlighted. Notably, it is still significantly above the middle Bollinger Band, but has been rejected at the upper band. This signifies control by the buyers. Notably, the sideways movement aligns with $0.600 mark, making it a key support level. Meanwhile, the RSI is at 67 percent, adding support to the upside view.
XRP price looks likely to continue the upside above its current pivot mark at 0.600. The crypto asset will likely encounter resistance at 0.623, but the buyers could break above that mark if they extend their control. Furthermore, the resulting momentum could take XRP to 0.650. Alternatively, a move below 0.600 will favour control by the sellers, with the first support likely to be at 0.577. However, extended control could break below that mark and build the momentum to invalidate the upside narrative. Also, it could clear the path for XRPUSD to test 0.550.
This post was last modified on Aug 08, 2024, 16:34 BST 16:34