XRP bulls count on lawsuit gains amid the crypto crisis

XRP, XRP bulls count on lawsuit gains amid the crypto crisis
Image by Peter H from Pixabay

Yerevan (CoinChapter.com) – XRP, the native token of Ripple Labs, adopted a bullish sentiment, trading at $1.62 in the London afternoon session Tuesday, despite the crypto market mayhem, with prices of Bitcoin and altcoins consolidating. One of the reasons behind the growth is the much-anticipated resolution in the Ripple vs. SEC lawsuit.

Lawsuit Developments

In hindsight, the Securities and Exchange Commission (SEC) filed the lawsuit against Ripple back in Dec 2020. The law enforcement agency accused the blockchain startup of selling $1.3 billion worth of XRP illegally. The SEC deemed XRP securities, thus weakening its case, as Ripple took no time to fire back. The latter accused the agency of extreme bias, as neither Bitcoin (BTC) nor Ether (ETH) got the same treatment.

Read more: SEC to Disclose Its Internal Bitcoin And Ethereum Documents — How Does It Impact XRP?

Investors of the token have tried to intervene in the proceedings as a third-party defendant led by attorney John Deaton. They met firm resistance from the SEC. The agency has blocked XRP holders from joining the case.

Attorney Jeremy Hogan, a lawyer who has been covering the SEC vs. Ripple lawsuit from the beginning, made a prediction, favoring the investors’ cause. He stated that if SEC “[…]chooses to settle with Ripple, that should happen in the next two weeks”.

Moreover, an online conference between the agency and the startup representatives is scheduled for May 21st. Federal Judge Sarah Netburn will oversee the meeting. The regulatory status of XRP will be the focal point of the meeting. Many investors hope this debate will give Ripple more edge and bring the lawsuit near to the close.

Read more: Should Elon Musk Start Accepting XRP For Environment’s Sake? This Analyst Thinks Yes

Meanwhile, XRP…

…was trading with a confident bullish bias in the London session Tuesday, using its 20-day Exponential Moving Average as additional support. The token broke out of the former technical formation Symmetrical Triangle. The latter is a bullish setup, considering the bullish sentiment preceding the indicator.

XRP goes bullish amid the crypto crisis. Source: XRPUSD on TradingView.com
XRP goes bullish amid the crypto crisis. Source: XRPUSD on TradingView.com

Giving the turbulent state of the crypto market as a whole, substantial predictions are hard to make. However, Jean-Pierre Buntinx, a contributor for CoinChapter.com considers the $1.39 value to be the critical margin (horizontal black line on the chart).

In his view, if the token manages to stay above the line in the upcoming sessions, it is likely to continue the bullish trend. If the value drops below the said margin, however, XRP might go as far as to seek support from its 200-day Moving average (light blue wave), which would bring the token down to approximately $0.60.

Read more: XRP Needs To Stay Above The $1.39 Support To Continue Uptrend

Crypto Crisis

XRP was one of the tokens still resisting the urge to drop, following Bitcoin. The alpha cryptocurrency lost 23 percent in a week and was trading at 44,988 against the USD, after briefly crashing to $42,100 on Monday. The crash was partially caused by the controversy including the EV mogul Tesla, which will no longer be accepting BTC payments for their cars as of May 13.

Bitcoin collapse caused a chain reaction on the crypto market, with Ether, Dogecoin, and others having a tough time logging gains. But many experts are hopeful this crash is an opportunity for traders to make a move, and support the market while making a profit.

Read more: Is Elon Musk Manipulating Bitcoin and Dogecoin Market? Researchers Weigh In

As many XRP traders and Ripple supporters routed for closure in the lawsuit against SEC in the foreseeable future, the token price was going bullish. It is possible the trend will continue. However, investors will have to wait until the results of the May 21 hearing are disclosed, to have more certainty. Considering the overall climate on the market, a bearish outcome for XRP is also a possibility.

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