11.5 C
Manchester
May 18, 2021
Image default
Altcoin

Small court victory pushes XRP price back to 2018 highs

XRP analysis.

  • The XRP almost reached $ 1.50 for the first time since January 2018.
  • The positive momentum comes along with small legal victories for Ripple Labs, which faces the U.S. Securities and Exchange over a lawsuit.
  • Technically, the XRP rose to overvalued levels, requiring a neutralizing price correction.

XRP has become an eye candy for traders again after a series of blunders.

The cryptocurrency has appreciated 780% since December 2020 when it was worth $ 0.17, reaching almost $ 1.50 at BitStamp, its highest value since January 2018. Meanwhile, in the annual period, it has appreciated 591% so far.

In retrospect, XRP’s recent gains have been accompanied by two factors: a technical undervaluation and some legal victories.

Why is XRP valuing so much?

The XRP started to rise at a time when most of its main rivals were showing signs of exhaustion. For example, Bitcoin, the leading market value cryptocurrency, has slowed its upward trend to close to $ 60,000. Meanwhile, Ethereum also failed to make a comeback after breaking a key $ 2,000 psychological resistance level.

Traders switch to assets that normally appear undervalued when they detect bullish fatigue in rival tokens. Even a little good news can move markets wildly during those times, which seems to be the case with XRP, which is recovering tirelessly.

At the center of its upward trend is a flood of legal victories.

Ripple Labs, the company that supports XRP, is fighting a lawsuit filed against it by the United States Securities and Exchange Commission (SEC). As a centralized blockchain powerhouse, the securities regulator claims that Ripple sold the XRP to its previous investors to raise funds for its operations, making the token a bond in nature.

Ripple argues against the claim, citing the SEC’s own classification of rivals Bitcoin and Ethereum as utility tokens. At the end of last week, the San Francisco company took steps to expose the SEC’s so-called bipolar nature in relation to cryptocurrencies.

United States District Court Judge Sarah Netburn of the Southern District of New York has ruled that the SEC should provide Ripple with access to its memos and minutes expressing the agency’s opinion of XRP’s competitors. These documents are intended to show what the U.S. regulator thinks about Bitcoin and Ethereum.

Meanwhile, the court also denied the SEC’s request to investigate Ripple’s CEO Brad Garlinghouse and the personal financial records of former CEO Chris Larsen.

What’s next?

Technically, XRP shows risks of overvaluing on longer-term charts.

The Relative Strength Indicator on the XRP weekly chart is above 70, indicating an overbought asset. The increase in positive speculation could push the Ripple token further into the overvaluation zone. But, ultimately, your risks of undergoing an equally volatile bearish correction would increase.

The XRP’s Fibonacci levels complement the bear theory. The token is now traded within the $ 1.22-1.51 area, giving traders opportunities to place bets within the range: opening a long position in a $ 1.22 to $ 1.51 recovery and / or a short position for $ 1.22 in a $ 1.51 withdrawal.

A breach above $ 1.51 opens up extended opportunities for $ 1.80. Meanwhile, a collapse below $ 1.22 poses a risk of falling to $ 1.22.

Fundamentally, XRP’s outlook remains uncertain, as long as it does not leave the SEC file unscathed.

Source: Bitcoinist

Related posts

Ripple promotes XRP on Twitter, Instagram, Facebook and SnapChat and confuses community

Anupreet Kaur

Facebook’s Libra project redesigns its cryptocurrency

Anupreet Kaur

Pound 2.0 threatens central bank currencies

Anupreet Kaur

Leave a Comment