Ripple’s XRP/USD returns 12% in the past week
A promising outcome of Ripple’s SEC case is driving gains
XRP’s relief rally may be limited by resistance
Let’s be objective. Ripple (XRP/USD) was one of the biggest gainers last week. It returned 12% in seven days, according to Coinmarketcap. Leading cryptocurrency Bitcoin gained 2.55% over the same period. Ethereum is up around 6.50%. However, these gains are only relief gains as most cryptocurrencies are still in bear market territory.
XRP’s performance has recently been affected by the outcome of its case with the SEC. Last week, Ripple’s lawyer James Filan expressed confidence that the company will battle regulators. The result is only speculative, but strongly affects the price of XRP. Conversely, there is no way to discuss the XRP price without involving Ripple’s feud with the SEC.
Ripple CEO Brad Garlinghouse has said that the ruling in this case will have a major impact on all cryptocurrencies. In this case, the SEC argued that Ripple was illegally offering securities through the XRP sale. Ripple said XRP should be classified as a virtual currency rather than an investment. While this has implications for the classification of other cryptocurrencies, XRP is at a crossroads.
A victory for Ripple would be good for XRP. There is no specific time frame for a decision on the case, but it is expected to close this year. Investors are looking for clues to buy or sell cryptocurrencies. However, technology-focused investors should look to sell now for a lower buying opportunity.
XRP stalls after hitting resistance
Source – TradingView
Technically, XRP has hit resistance at $0.38. The resistance coincides with overbought conditions. This suggests that whales are optimistic about the price surge as the SEC case verdict looms. We think the coin will slide lower after stalling at the resistance level. Net support is around $0.32 and $0.30, although the decline is unlikely to hit those levels.
XRP/USD has been surging recently on promising leads in the SEC case. The token has hit resistance. Investors should sell now for a chance to buy on a pullback.