XRP was on the move this morning, testing resistance at $1.00 levels. Hopes of a favorable outcome to the Ripple-SEC case continues to deliver support.
XRP has been in the news this week, with optimism over a favorable outcome to the SEC complaint delivering strong support. A lawsuit filed against the SEC in favor of Ripple Lab and XRP has added to the increased level of investor interest.
Empower Oversight Law Suit
On Wednesday, we looked at the latest shift in the Ripple Lab-SEC lawsuit dynamic. Empower Oversight, a non-profit government watchdog, filed a lawsuit against the SEC. The claim alleges that former SEC officials were biased against Ripple Lab and XRP.
Increased news coverage has driven XRP northwards. Empower Oversight’s claim against the SEC has further driven investor optimism of a favorable outcome to the Ripple-SEC case.
The markets are now betting on an Empower Oversight win against the SEC, which could force the SEC to find the compromise with Ripple Lab.
Key to the Empower Oversight lawsuit is a claim that there was a conflict of interest when the SEC filed a case against Ripple Lab but not Ethereum. Empower Oversight claims that former SEC official William Hinman received millions of Dollars from his former employer while helping guide the SEC’s regulation of cryptocurrencies. His former employer, Simpson Thacher, is part of a group that promotes Enterprise Ethereum. The lawsuit claims that Hinman said that Ethereum wasn’t a security, which caused an ETH price spike. This was then followed by a lawsuit against Ripple Lab, leading to slide in the value of XRP. The lawsuit against Ripple Lab claims that XRP is a security.
XRP Price Action
On Wednesday, XRP rose by 0.76%. Following a 7.54% rally on Tuesday, XRP ended the day at $0.9546.
At the time of writing, XRP was up by 3.63% to $0.9892. A bullish start to the day saw XRP rally from an early morning low $0.9644 to a high $0.9989 before easing back.
The early rally saw XRP break through the day’s major resistance levels before falling back through the third major resistance level at $0.9925. Resistance at $1.00 pegged XRP back this morning.
Looking ahead, a break back through the third major resistance level would bring $1.00 levels into play. XRP had last seen $1.00 levels on 1st December, while on its reversal from $1.29 levels struck in early November.
For the bulls, a breakthrough to $1.00 levels would bring $1.10 levels into play. Looking at the EMAs, the 50 has pulled away from the 100 and 200, supporting further upside ahead. XRP struck an ATH $3.3499 back in January 2018 and a recent high of $1.9660 in April 2021. The XRP bullish are betting on a run at $5.00.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.