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Highlights
- XRP price surged rapidly, erasing Monday's crash as the lawsuit concluded with Ripple paying $125 million in fines.
- An upcoming golden cross points to a new bullish phase for XRP without overhanging legal battles.
- XRP must hold above $0.6 support to protect weekly gains and avoid a potential correction to $0.55.
XRP price surged in double digits after Judge Analisa Torres made a final ruling, ending the longstanding legal battle between Ripple and the Securities and Exchange Commission (SEC). The crypto industry’s seventh-largest digital asset beamed with immense potential to rally.
XRP Price Jumps On Ripple Vs SEC Lawsuit End
XRP price exploded 20% on Thursday, erasing the entire Monday crash, thanks to the conclusion of the case between Ripple and the SEC. The crypto community anticipated a settlement from early July, with multiple Ripple’s XRP transfers fuelling speculation.
However, the presiding Judge, Analisa Torres, ruled on Wednesday that Ripple pay $125 million in civil fines. The judge also imposed an injunction warning the blockchain against future securities law violations.
Finally over…for now. Thanks again James! Here are my quick takeaways on the ruling:https://t.co/IqdlxMz22C
— Fred Rispoli (@freddyriz) August 7, 2024
The SEC sued Ripple in December 2020 for allegedly violating US Securities Law with the sales of its issued token XRP. The first ruling on the case in July 2023 exonerated secondary sales of XRP, such as those conducted on exchanges. However, Ripple still had a case to answer over direct institutional sales.
It is a major milestone for Ripple at the moment, considering the $125 million penalty imposed. However, the SEC will likely appeal both rulings in the coming weeks, which could further complicate matters for XRP.
Technical Indicators Turn Bullish As XRP Rallies
XRP price rally continued after a brief pause above $0.5 support and resistance at $0.52 on Wednesday. Following the news of the lawsuit ending, traders flocked to XRP markets, driving the price to test the $0.64 hurdle on Thursday.
At the time of writing, Ripple price hovered at $0.618 as various indicators, including the Relative Strength Index (RSI), amplified the uptrend. Holding at 69, the RSI reveals a strong bullish conviction among trends who would be willing to bet on a further increase to $0.7 and later extend the rally past $1.
The 50-day Exponential Moving Average (EMA) is about to flip above the 50-day EMA, forming a golden cross. This is a bullish pattern, signaling a new bullish outlook.
Increasing open interest in the futures market in tandem with volume is another bullish signal to consider. Coinglass data shows OI rising 50% in 24 hours to $1.19 billion.
Traders must be vigilant amidst the drastic price increase. Some people may decide to sell after achieving key profit margins following the upswing from Monday’s $0.43 low, thus encouraging a build-up of overhead pressure. A daily close above $0.6 support is required to affirm the bullish move, with declines below the same level likely to push XRP price down to $0.55.
Frequently Asked Questions (FAQs)
1. Did Ripple settle with the SEC?
2. How much is Ripple paying in penalties?
3. Is XRP price going to $1?
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