The XRP price has experienced a 1.5% drop in the past 24 hours, sliding to $0.461331 following the news that Ripple and the SEC have been given a one-week extension to file motions for summary judgment. Despite the recent dip, XRP’s price has seen a gain of 8% in a week, 2% in the last 30 days, and an increase of 35% since the beginning of the year.
The optimism surrounding the Ripple-SEC case is thought to be the main driving force behind these gains, as many anticipate a favorable outcome for Ripple. If such a ruling indeed materializes, XRP will likely witness a massive rally in the following weeks, potentially making it the best-performing major cryptocurrency this year.
However, not everything seems set in stone. XRP’s chart presents a mixed position, with indicators moving in contradictory directions. Its relative strength index has risen today from an oversold position below 30, but the 30-day moving average has begun sliding towards its 200-day average, which could imply a price drop in the coming days. That being said, XRP’s medium-term support level has increased modestly, making it possible for any short-term decline to be quickly reversed.
The fundamental picture for XRP looks encouraging, as both the SEC and Ripple are filing motions for the case to reach a conclusion with a summary judgment. The deadline for this filing is June 13, which could result in the long-awaited end of the case a few weeks afterwards.
Legal opinion has increasingly sided with Ripple in recent weeks, especially following the judge’s denial of the SEC’s motion to block public access to the so-called Hinman emails – documents related to an important speech by SEC’s William Hinman in 2018. Hinman declared Ethereum as not a security during his speech, leading to speculation that the documents might shed light on the SEC’s stance on XRP at the time.
If the ruling turns out to be in Ripple’s favor, XRP could rally to $1 in a matter of weeks or days. A wider market recovery could also aid its rise to $2 or $3. However, investors must consider that Ripple could still lose its case with the SEC, which would negatively impact the altcoin’s price.
Given this risk, it might be wise for investors to diversify their portfolios and consider newer altcoins with more upside potential. For instance, presale tokens like ecoterra, a soon-to-be-launched recycle-to-earn platform, and AiDoge, an AI-powered meme-generating platform, have generated significant interest and could present attractive investment opportunities.
Source: Cryptonews
