- The rising bullish sentiment about XRP led to a rise in XRP’s price to $0.40.
- On Wednesday bulls used positive news in Ripple Labs against the SEC case to retest an important price zone.
- The technical picture is also used to predict the price of XRP.
XRP, the cryptocurrency that is at the heart of the Ripple Labs versus US Securities and Exchange Commission (SEC court battle), has traded higher in the last few days due to growing optimism among investors.
Silvergate’s liquidation news has seen XRP price retreat below the round figure of 40 cents. The bulls are still in control, however, and the price is 2.9% higher than the previous week.
XRP Price Short-Term Outlook: All eyes on SEC or Ripple
As mentioned above, sideways trading on Thursday saw the XRP cryptocurrency lose some of its gains as the wider market fell on negative Silvergate news. Bullish sentiment surrounding XRP/USD is still high, despite this.
In fact, bulls are likely targeting fresh gains that could see the XRP resistance test at $0.40 levels reached Wednesday.
This particular upside momentum had a lot to do with yesterday’s ruling by a US judge, who handed Ripple Labs a crucial boost by striking off one of SEC’s expert witnesses. Experts believe the ruling has dealt a “fatal” blow to SEC’s quest for a summary judgement.
I agree with this 💯 In fact, I decided to do a live stream that just ended discussing the possibility or maybe likelihood of a jury trial to prepare folks. Scott’s analysis is on 🎯 and I believe the expert’s preclusion is fatal for the SEC’s summary judgment motion. https://t.co/uR6n98TOeS
— John E Deaton (@JohnEDeaton1) March 7, 2023
The SEC’s lawsuit against Ripple goes back to December 2020 and the latest development has an increasingly optimistic market rooting for a belated upsurge in XRP price following what’s largely been a downtrend.
XRP price prediction for whale activity
The sentiment has increased with whale activity over the last few days. On-chain data also shows massive cryptocurrency buying.
Whale Alert: Coins moved this week from exchanges highlighting One transaction involved more than $10,000,000 in XRP that was transferred from Bitso cryptocurrency exchange.
🚨 28,400,000 #XRP Transferred from (10,794,884 USD). #Bitso Unknown wallethttps://t.co/59h4deBdjG
— Whale Alert (@whale_alert) March 7, 2023
How accurate is the XRP prediction?
The price for XRP has crossed above a key downtrend line in the daily chart. It is currently hovering above its 50-day moving average. The chart below shows that XRP/USD broke above its 200-day average, which suggests that bulls are winning.
Daily chart of XRP price showing possible support and resistance. Source: TradingViewDespite price falling below the 200-day MA, there is a likely upside reversal as the Relative Strength Index is at 50 and rising.
With conviction, bulls can break resistance at $0.40 and increase buying to push XRP back towards the support zone of $0.45. The November 2022 supply area at $0.50 is the next target.
The short-term breakdown could see support at $0.33 retested, which is the trendline since June 2022.
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