XRP price is showing strength on Monday reflecting the general bullish outlook of the market. Although May started in great turmoil as cryptocurrencies, including Bitcoin bled profusely. The sell-off partly triggered by rising inflation in the US and dwindling market sentiment saw XRP pierce through the support at $0.5 and swept liquidity at $0.4785.

Retail investors were particularly concerned about the lack of enthusiasm that followed Bitcoin halving. Price increases had been suppressed, subsequently killing expectations of immediate rallies.

However, investors with a long-term view of the impact of Bitcoin halving on crypto prices took advantage of last week’s discounted prices to increase their holdings ahead of the bull run later in 2024.

Now that cryptocurrencies are unanimously trending higher on Monday, XRP price dodders at $0.5318. It is up 5% in seven days while trying to recoup  9.5% losses in the last month.

The performance of XRP also hinges on the ongoing lawsuit between Ripple, the issuing company, and the Securities and Exchange Commission (SEC).

Although Ripple celebrated a partial landmark win in July 2023 when the court declared secondary sales of XRP not to constitute securities, the agency has since focused on making the blockchain company pay for its role in direct institutional sales.

The outcome of this case could determine whether XRP price drastically explodes above $1 while targeting the all-time high of $3.4, or drops to near zero levels.

The next few weeks are important to both Ripple and the SEC as they battle to tip the scale in their favor. On April 22, Ripple filed its response to the agency, arguing against the $2 billion penalty proposed by the regulator. The SEC is expected to reply to Ripple’s arguments in a filing on May 6.

Ripple vs. SEC: SEC Set To File Brief

In the homestretch of the lawsuit, the SEC will submit its response to Ripple’s filing on April 22. It is expected that the SEC will stand its ground on why Ripple should pay the hefty penalty for violating US securities laws.

According to X user @AshleyPROSPER1, this submission marks the final reply within the remedies phase. The next important dates are likely to fall in July or August depending on the preceding judge.

#XRP #XRPCommunity
Tomorrow we see the final reply from the SEC in the remedies phase of the #Ripple lawsuit. After that we wait until July or August, maybe even September for Judge Torres’s final ruling.
Do we see an appeal from either side after that? I think we do, but it… https://t.co/29E7irygkE

— Ashley PROSPER (@AshleyPROSPER1) May 6, 2024

Case watchers say that a settlement may arise anytime between now and the ruling anticipated around September. Moreover, an appeal is possible from either of the parties.

Understanding XRP Price Technical Outlook

XRP price sits on top of robust support provided by the 20-day Exponential Moving Average (EMA) (the line in blue at $0.5296). This area forms a confluence with the descending channel’s upper boundary.

XRP price chart | Tradingview

A buy signal from the Moving Average Convergence Divergence (MACD) reinforces the new bullish outlook. As the indicator rises into the positive region, the path of least resistance will remain upward.

Key achievements traders will look for as they bet on a price increase to $1 is the defeat of resistance at the 50-day EMA and the 200-day EMA (the red and purple lines on the chart). Other key milestones include $0.65 and $0.75.

The post Why XRP Price Aims $1 Ahead Of SEC’s Reply In Ripple vs. SEC appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am