The price of XRP soared by almost 4.25% to $0.461 on May 17, achieving its highest level in more than a week following Ripple’s modest victory in its ongoing legal dispute against the U.S. Securities and Exchange Commission (SEC). Interestingly, XRP’s gains were observed despite the broader cryptocurrency market, led by Bitcoin (BTC) and Ether (ETH), experiencing slight losses of around 1% within the past 24 hours.
Market analysts noted that XRP’s price cutoff from the rest of the cryptocurrency space seemed to coincide with a tweet from former defense attorney James K. Filan, who shared a copy of a May 16 ruling on the legal battle between Ripple and the SEC. The ruling saw U.S. District Judge Analisa Torres reject the SEC’s motion to keep the agency’s internal communications under wraps following a June 2018 speech by its former chairman, William Hinman, in which he claimed that Ethereum’s Ether token is not a security asset.
This decision could potentially strengthen Ripple’s chances of legally proving that XRP is not a security, which may explain its 10.5% price increase since May 16, even amid broader market bearish sentiments. For example, trading volumes for XRP-related pairs on Binance surged by over 200% within 24 hours as prices rallied, indicating that the upward move might be supported by substantial momentum.
However, technical indicators for XRP are beginning to align with bearish perspectives, leading some to predict a possible price correction in May. Critics argue that the so-called Gravestone Doji candle, which appeared on XRP’s March 17 candlestick chart, was confirmed by a lengthy upper wick and a small gap between the token’s opening and low points – a pattern usually considered indicative of bearish reversals.
Additionally, XRP’s potential downside risks include resistance from its 50-day exponential moving average (50-day EMA) at around $0.454 and a short-term descending trend line. In the event of a price pullback, XRP could see its next significant support level at $0.42 in May, a 5.5% drop from current price levels.
On the other hand, a decisive break above the resistance confluence might propel XRP prices toward the $0.50 mark by June. As always, investors should conduct their own research and evaluate potential risks before making any trading decisions.
Source: Cointelegraph
