Ripple’s price (XRP) is up nearly 30% in less than a week amid positive sentiment over a lawsuit in which the US Securities and Exchange Commission (SEC) alleges that Ripple has been selling XRP as illegal securities.
SEC vs Ripple
Judge Analisa Torres has given Ripple permission to respond to the SEC Rules memo in support of Motion to Strike’s fair warning defense, according to court documents.
In addition, Judge Torres also ordered the unsealing of three documents relating to the SEC v. Ripple, including the email thread and filing notice of Ripple CEO Brad Garlinghouse, and founder Chris Larsen’s email thread.
Markets responded positively to Judge Torres’ orders. Immediately after they got to the point, the price of XRP rose by nearly 30%, from a rally from the February 3 low of $0.058 to $0.782 on February 7.
The upward movement also gained momentum when Jeremy Hogan, partner at law firm Hogan and Hogan, indicated that the Securities and Exchange Commission could face a ruling against Ripple.
XRP the ‘death cross’ of the future?
The recent takeover in the XRP market also occurred when the coin retested the multi-month support trend line, as shown in the chart below.
XRP/USD weekly chart. Source: Trading View
XRP is currently facing a confluence of resistance in the form of the 20-week (green) and 50-week (red) exponential moving averages. In the meantime, the two moving averages form a death cross if the 20-week moving average crosses the 50-week moving average – a classic sell signal.
However, closing the high volume above the exponential moving averages mentioned above can limit the selling risk associated with the death cross. Additionally, the continuation of the bullish momentum could again test XRP price to the descending trendline resistance near $1.26, 50% higher than the current levels.
Related: Ripple announces $200 million share buyback and is optimistic about 2022
Alexander Mamasedikov, co-founder of crypto wallet service MinePlex, shrugged off warnings of shortcomings, saying that the end of the long legal battle between the SEC and Ripple would be positive for XRP.
“With the SEC-initiated legal battle over the security of XRP expected to be settled this year, the current acquisitions can be seen as an opportunity to discount potential long-term price increases,” he said. He said. He added:
“If the current trend continues, the ambitious support of the XRP community could help lift the cryptocurrency to a new monthly high of $0.88 per coin.”