XRP rises 30% as Ripple is granted permission to outline its ‘fair notice defense’ against the SEC. However, the long-term chart is depicting a fatal cross pattern, indicating that a selloff is imminent. The price of Ripple (XRP) has risen about 30% in less than a week, owing to favorable emotion around a court case in which the Securities and Exchange Commission of the United States argues that Ripple traded XRP as unlawful securities, reports Coin Telegraph.
XRP “Death Cross”
When illustrated in the chart below, the last round of purchasing in the XRP marketplace occurred as the currency re-tested its inter-support trendline.
The 20-week (green) & 50-week (red) exponentially weighted moving averages are currently forming a resistance confluence for XRP (EMAs). Meanwhile, if the 20-week EMA crosses underneath the 50-week EMA — a typical sell signal — the two moving averages appear prepared to create a “death cross.”
Nonetheless, a strong, high-volume close above the aforementioned EMAs might minimize the death cross’s selloff dangers. Furthermore, if the price of XRP continues to rise, it might retest its declining trendline resistance at $1.26, representing a 50% price gain from current levels.
The co-founder of cryptocurrency wallet provider MinePlex, Alexander Mamasidikov, dismissed the bearish predictions, claiming that the resolution of a long-running legal dispute between the Ripple and SEC will be bullish for XRP.
“With the expectation that the SEC-instigated legal battle regarding the status of XRP as a security will be decided this year,” he added, “the current buy ups may be considered as an outlet to pile at a discount for a prospective price increase in the longer term.”
“Should the present trend continue, XRP’s community’s enthusiastic support may propel the cryptocurrency to a monthly record of $0.88 per coin.”
SEC Vs Ripple
According to court filings, Judge Analisa Torres had awarded Ripple authority to reply to the SEC’s Declaration of Law in favor of the Request to Strike fair notice argument.
Judge Torres also authorized the uncovering of three papers related to the SEC vs. Ripple lawsuit, along with the email string and interview notice of Ripple CEO Brad Garlinghouse and the email string of cofounder Chris Larsen.
The orders of Judge Torres were well greeted by the markets. XRP’s price rose by about 30% shortly after they got it to the finish line, climbing from $0.058 on February 3 to $0.782 on February 7.
The rally gained traction when Jeremy Hogan, a lawyer at the legal firm Hogan & Hogan, indicated that now the SEC vs. Ripple case may be nearing a conclusion.