- XRP price could continue its ascent after a strong flip of the $0.397 hurdle into a support level.
- The next stop for this remittance token is $0.464, but if momentum remains strong, it could tag $0.561.
- A breakdown of the $0.384 support level will invalidate the bullish thesis for Ripple.
XRP price has been consolidating for quite some time and has dug below crucial support levels but has recovered above it equally quickly. The last leg of Ripple has been an amazing sight to behold as it exploded swiftly and through many long-standing hurdles.
The beginning of the end for SEC vs. Ripple
Interestingly, the remittance token has remained strong despite the weak market structure, and this bullishness can be attributed to the ongoing developments in the SEC v. Ripple lawsuit. While both parties have filed for summary judgment, the defendants seem to be much more confident in the outcome.
This can be seen clearly as Ripple’s attorney Stuart Alderoty has been vocal about the lawsuit on Twitter. Additionally, the general counsel was joined by the company’s CEO, Brad Garlinghouse, as he stated that the SEC’s filings make it clear that they are not interested in applying the law but “want to remake it all in an impermissible effort to expand their jurisdiction far beyond the authority granted to them by Congress.”
Alderoty, on the other hand, stated that the SEC has been unable to “satisfy a single prong of the Supreme Court’s Howey test.” The Howey Test is how the regulators distinguish an asset as a security.
The latest development, however, is Ripple’s general counsel stating they feel “confident” and could be the start of the end for this lawsuit that has been ongoing since December 2020.
XRP price revels in happiness
XRP price has taken off after the last retest of the triple tap setup, rallying roughly 31% in about a week. This technical formation is similar to the triple bottom setup, but the only difference is that the 2nd tap deviates below the initially formed low.
This run-up in XRP price has sliced through the $0.384 hurdle and flipped the $0.331 to $0.464 range’s midpoint at $0.397 into a support floor. As mentioned in yesterday’s publication, the FOMC meeting caused Ripple to pull back to the $0.384 level and has since bounced 5.3%.
Going forward, investors can expect XRP price to sweep the range high at $0.464. But in a highly bullish case, the remittance token could extend to 20% higher to tag the $0.561 to $0.596 resistance area.
XRP/USDT 1-day chart
While things are looking up for XRP price, a breakdown of the $0.384 support level will indicate an inherent weakness in buyers. This development will also invalidate the bullish thesis and skew the odds in bears’ favor.
Such a move could see XRP price revisit the $0.360 support floor or $0.331 in a dire case.