Yerevan (CoinChapter.com) – XRP, a blockchain asset issued by San Francisco-based blockchain firm Ripple Labs, showed signs of pursuing a bullish breakout during the early London session on Thursday.
The upside bias emerged after XRP traders showed optimism that Ripple Labs winning a lawsuit filed against it by the Securities and Exchange Commission. That led to a short-term capital migration into the XRP market, leading its spot rates against the US dollar to as high as $1.76.
XRP’s move upside also had it break above a descending trendline resistance that constituted a Symmetrical Triangle. Given the Ripple token’s trend prior to forming the pattern was bullish, its next potential bias looked skewed to the upside, as well.
XRP derived additional upside bias by maintaining its 20-day Exponential Moving Average (EMA-20), the blue line on the chart above, as support. Historically, the said wave has protected assets from falling into a long-term bearish pit.
Upcoming Court hearing
In retrospect, SEC had accused Ripple Labs of illegally raising $1.3 billion by selling unregistered securities in the form of XRP tokens, thus violating investor protection laws. It deemed XRP as securities, which singled out Ripple’s token from the line of other cryptocurrencies like Bitcoin or Ethereum. The lengthy court proceedings have been dragging on since December 2020.
Another closed hearing is scheduled for May 6, during which the court will discuss the “resolution of litigation claims,” as well as “institution and settlement of injunctive actions.” Ripple’s supporters anticipate that the next court discussion would be positive for Ripple Labs.
Two new additions on the Ripple Lab’s team also contributed to the new XRP’s bullish sentiment. Rosa Gumataotao Rios, the Ex-US Treasurer, joined the team as the newest member of the board of directors amid the heated lawsuit.
Meanwhile, Kristina Campbell joined Ripple Labs to serve as its chief financial officer (CFO).
Ripple Chief Executive Brad Garlinghouse commented on the new appointments, saying that both Rios and Campbell arrive during a “critical time for the company.” He added that their presence would continue Ripple Labs’ international expansion while fighting further for regulatory clarity.
XRP Amid The Altcoin Boom
All major altcoins in the top 5 cryptocurrencies by market capitalization currently maintain a bullish bias, while Bitcoin (BTC) price is still stabilizing. The past week brought significant gains to Ethereum (ETH), Binance Coin (BNB), Dogecoin (DOGE), XRP, and Litecoin.
If the past is any indication, traders tend to turn their attention to altcoins as Bitcoin consolidates. They redirect a part of their portfolio to the tokens with maximum potential to secure short-term profits. In turn, it spikes their value against the US dollar and Bitcoin itself.
XRP, as one of the biggest altcoins, benefits from the altcoin wave and looks at a new potential breakout.