In addition to benefiting from the general crypto market bull run, XRP is recording additional positive momentum from the ongoing legal battle between Ripple and the Securities and Exchange Commission (SEC).
Currently, XRP is trading at $0.46, with solid weekly gains of 20.67%. This makes XRP the biggest gainer among the top 100 cryptocurrencies by market capitalization.
XRP’s current price momentum follows the token’s successful breaching of the $0.40 resistance level after experiencing a relatively flat performance in February. The highlight of the token’s rally was on March 22, after XRP shot up by over 20% within 24 hours.
The sixth-ranked cryptocurrency by market cap is trading at its highest value since November 2022. The price rally has also come with a significant capital inflow into the token, elevating the XRP market cap to $23.5 billion.
XRP’s optimism from the SEC case
Although XRP has primarily traded in tandem with the general market, the asset’s latest elevated interest can be tied to growing optimism that Ripple may emerge victorious in its legal battle with the U.S. regulator. Notably, the SEC is suing Ripple for selling unregistered securities in the form of XRP tokens.
One glimmer of optimism emerged after attorney James Filan took to Twitter to reveal that the defendants in the case had filed a Letter Notice of Supplemental Authority. The filing reportedly referenced a separate legal case in which Judge Michael E. Wiles of the U.S. Bankruptcy Court rejected the SEC’s argument, ruling that it lacked clarity. The defendants appear to be leveraging this ruling to support their fair notice defense, offering renewed hope to XRP investors.
Furthermore, there is a growing interest regarding the possibility of the presiding judge ruling to unseal the Hinman documents, which potentially offer a glimpse of how the SEC initially viewed the classification of securities.
Pro-XRP lawyer John Deaton believes that the documents will eventually be made public despite the SEC’s objections. According to Deaton, even if the judge does not order the documents to be unsealed, they will still be relied upon to make her judgment and therefore declared as “judicial documents,” resulting in their eventual unsealing.
XRP is also getting a boost from Ripple’s assurances that a large portion of the company’s business is based outside the United States.
XRP technical analysis
The continued surge in XRP’s price is reflected in the technical analysis data obtained from TradingView. Based on a one-day summary, the sentiment for a ‘strong buy’ recommendation is rated at 16, with moving averages also indicating a ‘strong buy’ with a gauge of 14. Despite these positive indicators, the oscillators remain neutral, with a rating of 8.
Several price estimates indicate that XRP has the potential to sustain gains and reclaim $0.50. For instance, according to a Finbold report, an AI-based tool at CoinCodex suggests that the token may trade at $0.509 on Easter 2023.
However, XRP still faces several headwinds ahead as it targets to reclaim $0.50. The token faces variables such as profit-taking that could slow down the already established momentum.
Similarly, the uncertainty around the ongoing case could still negatively impact the price action of XRP.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.