Yerevan (CoinChapter.com) — XRP, the native token of Ripple Labs, appears that it is on the brink of a fresh bullish breakthrough just ahead of its lawsuit hearing against the US Securities and Exchange Commission (SEC) on May 6.
According to the details of the upcoming closed hearing, the court will discuss the “resolution of litigation claims,” as well as “institution and settlement of injunctive actions.” XRP traders are hopeful the hearing will become the last in the long chain of back-and-forth proceedings in the lawsuit, leading to a positive outcome for Ripple.
SEC vs Ripple
In December 2020, the SEC accused Ripple Labs of illegally raising $1.3 billion by selling unregistered securities in XRP. The agency mentioned Ripple’s chief executive Brad Garlinghouse and the former CEO Chris Larsen as defendants. However, as the case progressed, Ripple was able to lock wins along the way.
It looks like the lawsuit “backfired”, the SEC said is in the defensive mode. Excerpts from a Forbes coverage:
The hearing showed that the case of the San Francisco fintech was based on an illogical premise. […] If these regulators were honest, they would admit that nothing in the 1933 Securities Act refers to cryptocurrency and then would request Congress to clarify the status. Instead, the SEC made an unfounded determination with no warning or processRoslyn Layton for Forbes.
Ripple supporters have their fingers crossed that the upcoming closed hearing may end the lengthy court proceedings. They hope the judge will rule in Ripple’s favor, which will propel the XRP price if the past is any indication.
The hearing on May 6 is not the only predictor of XRP’s upcoming bullish break. The technical indicators also point to the same.
XRP one-day price chart is forming a symmetrical triangle pattern.
The structure consists of a descending upper resistance line and an ascending lower support line, looking to converge later. XRP/USD has traded inside the Triangle range so far, with the upper trendline capping bullish attempts and the lower trendline the bearish ones.
The consolidation within the symmetrical triangle indicates a future breakout either with a bullish or a bearish sentiment. Given the possible direction of the court ruling, the bullish predictions have merit. It also stands valid because Symmetrical Triangles lead to breakouts in the direction of the previous price trend. XRP was rising before it started consolidating in the Triangle range.
The blue line on the chart above represents the 20-day Exponential Moving Average (EMA 20). The EMA 20 typically provides additional support for the token and a strong indication for investors to trade against. When the currency approaches or drops below the EMA-20, the traders tend to go in and purchase the token. It keeps the price afloat, securing a bullish trend.
Currently, the EMA 20 line is ascending, which is also a positive sign for Ripple supporters. According to some analysts, the ascending EMA 20 is indicative of an upcoming bullish break.
This forecast is in sync with predictions made last week about the general direction of the token. They placed the XRP price around the $2.00 margin, but time will tell whether the predictions pan out.