Ripple’s XRP/USD has returned 12% in the past week
A promising outcome of Ripple’s case with the SEC is fueling gains
XRP’s relief rally may be curtailed by resistance
Let’s be objective. Ripple (XRP/USD) has been one of the top gainers in the last week. It has returned 12% in 7 days, according to data by Coinmarketcap. Leading cryptocurrency Bitcoin has recovered 2.55% in the same period. Ethereum is up around 6.50%. However, these gains are only relief gains as most cryptocurrencies remain in the bear zone.
XRP’s performance recently has been influenced by the outcome of its case with the SEC. Last week, Ripple’s lawyer James Filan exuded confidence the firm would trudge the regulator. The outcome is only speculatory but strongly impacts the price of XRP. Conversely, one cannot discuss XRP price without touching on Ripple’s tussle with SEC.
Ripple CEO Brad Garlinghouse has said the ruling of the case would have major impacts on all cryptos. In this case, the SEC has argued that Ripple had illegal security offering through XRP sales. Ripple has stated that XRP should be classified as a virtual currency and not an investment. Although this has ramifications for the classification of other cryptos, XRP is at a crossroads.
A win for Ripple would be bullish for XRP. No specific time is given for the decision of the case, but closure is expected this year. Investors are looking for clues to buy or dump the crypto. However, technically focused investors should be looking to sell now for a chance to buy lower.
XRP stalls after hitting a resistance
Source – TradingView
Technically, XRP has hit resistance at $0.38. The resistance coincided with overbought conditions. It suggests that whales are optimistic about the price surge as the SEC case ruling nears. We believe the token will slide after stalling at the resistance. The net support is around $0.32 and $0.30, although it is unlikely the fall will hit the levels.
XRP/USD has been surging recently on promising clues of the SEC case. The token has hit resistance. Investors should sell now for a chance to buy on a retracement.