The price of XRP has broken away from the general cryptocurrency market, with the token finding renewed bullish catalysts from the long-standing legal battle between Ripple and the Securities Exchange Commission (SEC). XRP’s newfound momentum has resulted in the token reclaiming a new resistance position.
In particular, XRP is trading at $0.45, a value representing gains of 20.54% in the last 24 hours. On the weekly chart, XRP is up 16%.
The current price action means that XRP is trading at its highest level since last year, November and after a long consolidation phase below the $0.40 level. XRP’s market cap stands at $22.64 billion after an inflow of $2.86 billion in 24 hours.
Drivers for XRP rally
Although XRP has mainly traded in tandem with the general market, which is currently experiencing bullish momentum, the exceptional growth can be linked to the growing optimism about Ripple emerging victorious in the case. This follows a series of positive developments in favor of the blockchain company ahead of the summary judgment.
For instance, XRP investors found new hope after the recent Letter Notice of Supplemental Authority filed by the defendants in the case. The filing revealed by attorney James Filan in a tweet on March 20 indicates that the defendants sought to support their fair notice defense by referencing a separate legal case where Judge Michael E. Wiles of the U.S. Bankruptcy Court for the Southern District of New York rejected SEC argument, ruling that it was too vague.
Ripple has argued that the lack of clear guidance from the SEC on navigating securities laws for digital assets has created confusion and uncertainty in the market, making it difficult for participants to understand how to comply with regulatory requirements. At the same time, Ripple’s CEO, Brad Garlinghouse, remains optimistic that the lawsuit will be resolved in the first half of the year.
The lawsuit’s outcome could significantly impact the broader cryptocurrency industry, which has been in limbo due to the lack of regulatory clarity.
Besides the lawsuit developments, the Ripple community is also buoyed by an assurance from Garlinghouse that the company was in a strong financial position. This followed the collapse of Silicon Valley Bank (SVB), to which Ripple had exposure.
XRP technical analysis
XRP’s ongoing price rally has also translated on the technical analysis retrieved from TradingView. A summary of the one-day gauges recommends the ‘buy’ sentiment at 15 while moving averages are for a ‘strong buy’ at 14. However, oscillators remain neutral at 8.
Overall, if XRP successfully sustains its gains above $0.45, the token will likely target reclaiming $0.50.
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