Ripple's XRP is on the charge through the early part of the week. Upbeat crypto market sentiment and SEC-Ripple news updates are key drivers.
It’s been a particularly bullish start to the week for Ripple’s XRP. On Monday, XRP surged by 21.66% to end the day at $0.8318. In a breakout session, XRP’s winning streak extended to 5 sessions.
While support kicked in from the broader crypto market going into February, news updates on the SEC v Ripple case have also delivered much-needed support.
SEC v Ripple News
Late last year, we reported on Empower Oversight filing a lawsuit against the SEC. Empower Oversight alleged that former SEC officials were biased against Ripple Lab and XRP. As a result of the lawsuit and the focus on bias in favor of Ethereum, XRP revisited $1.0 levels before succumbing to crypto market forces.
In early February, the SEC v Ripple Lab case took another twist, giving investors further hope of a favorable outcome to the SEC lawsuit.
Last week we covered news of lawyers petitioning for non-US XRP investors, demanding an investigation into the SEC’s actions against Ripple Lab.
As we reported, the petition claimed that “the SEC enforcement actions on cryptocurrencies have involved the appearance of improper ties and conflicts of interest among officials, and should be investigated”.
Importantly, the petition also points out that petition attorney John Deaton “has compiled evidence that SEC officials may have colluded with outside parties to regulate cryptocurrencies in line with their personal financial interests”.
The filing of the petition followed news of the SEC asking for more time to hand relevant case documents to Ripple Lab.
Mixed Court Rulings on Ripple Motions Deliver XRP Support
With a flurry of activity at the turn of the year and the SEC facing suits from all angles, XRP investors have found some much-needed market support.
Overnight, further updates on the SEC v Ripple case were also XRP positive. The crypto markets reacted favorably to news of case judge Analisa Torres granting a number of motions in favor of Ripple. Court documents detail the motions and which Ripple motions were granted and denied.
XRP Price Action
At the time of writing, XRP was up by 7.57% to $0.8948. Through the early part of the day, XRP fell to an early morning low of $0.8144 before rallying to a day high and a current year high of $0.9145. The early rally saw XRP break through the first major resistance level at $0.8896.
For the day ahead, XRP would need to avoid a fallback through the first major resistance level to bring $1.0 levels into play.
Support from the broader market would be needed, however, for a breakout from the second major resistance level at $0.9475.
A fall back through the first major resistance level would bring sub-$0.85 levels back into play. Barring a broad-based crypto sell-off, however, XRP should steer clear of sub-$0.80 levels and the day’s $0.7811 pivot. The first major support level sits at $0.7232.
Looking at the EMAs and 4-hourly candlesticks (below), the 50-day EMA continued to narrow on the 200-day EMA. On Monday, the 50-day EMA had crossed through the 100-day EMA delivering a bullish cross. A bullish cross of the 50-day EMA through the 200-day EMA would support a return to $1.00 levels.
Over the near-term, a move back through to $1.00 levels would then bring November’s high $1.348 into view.
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.