Ripple’s XRP, the native token of XRP Ledger, experienced an astounding surge of over 75% within a 24-hour period following a favorable ruling in the longstanding U.S SEC lawsuit.
Ripple emerges victorious.
XRP had been grappling with two significant challenges that resulted in a severe decline in its price. Firstly, the longstanding SEC lawsuit claiming XRP was an unregistered security created fear, uncertainty, and doubt among investors, leading to a suppression of the token’s value. Secondly, the “crypto winter” affecting the general cryptocurrency market has further pushed the price of XRP down.
A pivotal moment occurred when a judge in the Southern District of New York ruled that XRP was “not necessarily a security on its face.” This verdict brought a wave of optimism among crypto investors, who saw it as a potential indication that other altcoins may not be considered securities either.
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Ripple’s triumph in the SEC lawsuit has injected fresh optimism among investors, extinguishing a major threat looming over XRP. The judge’s ruling has paved the way for a potential resurgence in XRP’s price. However, it’s important to note that this is a trial court decision, and future appeals may occur.
After a 3-year legal battle, this ruling represents a significant milestone for the entire cryptocurrency industry, as it faces ongoing scrutiny from U.S. regulators. In 2020, the SEC filed a lawsuit against Ripple, alleging violations of U.S. securities laws through the sale of XRP without proper registration.
Analyzing XRP’s price surge
The price of XRP (XRP) currently stands at $0.832433, with a 24-hour trading volume of $9,251,944,781.83. Over the past 24 hours, XRP has witnessed an extraordinary price increase of 77.63%, and in the past seven days, it has surged by 77.87%, according to CoinGecko. With a circulating supply of 53 billion XRP, the token’s market cap has reached $41,912,931,951.
Currently, on the weekly timeframe, XRP’s RSI value stands at 87.5. The relative strength index (RSI) value, which estimates market momentum, is above 70, indicating an overbought condition. This suggests that XRP may have experienced a rapid price increase and could potentially be due for a correction.
XRP’s recent price surge broke through the resistance level at $0.58 to $0.6, opening up the possibility for further gains. The closest resistance level to the current price is at $0.95 to $1, which may serve as a target for XRP’s upward movement.
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Looking ahead for XRP
As the overall cryptocurrency market gradually recovers from the bearish momentum, combined with Ripple’s legal victory, XRP appears to have a clearer path forward. The positive outcome of the SEC lawsuit has alleviated concerns and renewed investor confidence in Ripple.
While other challenges and uncertainties may rise in the future, the lifting of the legal cloud has created an environment where investors are likely to regain trust in Ripple, potentially leading to further price appreciation for XRP.
Credit: Solomon Victor is a Technical Analyst who is also knowledgeable about various aspects of blockchain and cryptocurrency.