Ripple’s XRP off to reclaim $1 amid market-wide recovery

New Delhi (CoinChapter.com) — Ripple’s XRP gained by 6.09% on Sunday, after a decline of 1.8% on Saturday. Although the crypto market has been chaotic since last month’s crash, it started the week on a strong note, with almost every major cryptocurrency following the move upward in tandem.

The $1 resistance level seems to be the next target for XRP as it carried forward Sunday’s upside momentum. Technical indicators predict a bullish revival for the token.

Despite posting gains on Sunday, XRP closed the last week down by almost 6%. While the Ripple token prices have recovered by 47.01% from the May 23 low of 0.6263, they are still trading lower than the token’s 2021 high of $2.00.

XRP, Ripple’s XRP off to reclaim $1 amid market-wide recovery
XRP daily price chart. Source: XRPUSD on Tradingview.com

The Ripple token prices have been trading above the 200-day simple moving average (200-DMA; the blue wave). XRP has established a support zone at $0.75, tested repeatedly in the last 4 weeks.

Also Read: Is XRP A Good Investment As Bitcoin Declines Continue?

The nearest resistance level is at $1.00, followed by $1.25 and $1.50. RSI for daily chart is slightly bearish at 43.14 but going upwards.

However, when using the 4-hour chart, the relative strength index (RSI), an indicator that measures an asset’s momentum, changes to the reading of 57.60. Traders perceive readings between 30-70 as neutral; therefore, the possibility of XRP continues its upside momentum remains higher. MACD also supports a bullish outlook.

XRP will need to break through the $1.00 milestone to establish a strong uptrend. At the time of writing, prices were at $0.8899, up by 0.39%.

The SEC Battle

The US Securities and Exchange Commission (SEC) filed a lawsuit in December 2020, claiming the San Francisco-based startup sold XRP as unregistered securities.

Ripple’s defense is built around the premise that the SEC did not issue them a proper notice that XRP trading will be deemed as a security.

Also Read: Cardano paints conflicting death cross and bullish triangle indicators as ADA rallies

The legal battle is an embittered one, with both sides relentlessly filing motions. Six days back, Ripple filed a ‘motion to compel’ the SEC to produce documents and communications related to BTC, ETH, and XRP vital for the company’s defense.

However, the regulatory body countered by saying that the Ripple’s demands are “premature” and “moot”.

A few days back, the SEC asked for a deadline extension for fact and expert discovery. Ripple’s representatives vehemently opposed the proposal, citing that the delay will threaten the company’s business operations.

Some reports claim that stalling may be a part of the SEC’s strategy to twist Ripple’s arm into accepting a settlement deal that benefits the regulatory authority.

Although XRP owners have no stake in Ripple Labs, investors follow the Ripple v/s SEC battle religiously, which means XRP prices can fluctuate based on the court’s decisions. For now, XRP prices seem to be unaffected by the court battle and following market trends.

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