The price of XRP rose on September 2 as traders assessed that Ripple Labs had an advantage over the US Securities and Exchange Commission in an ongoing legal battle.
The XRP / USD exchange rate rose 4.74%, hitting $ 1.296 for the first time since Aug 23. The pair’s spike appeared alongside an increase in trading volume on the 4-hour chart, confirming traders’ intentions to support the upward move in the upcoming sessions.
XRP has shot up this week, reflecting a similar upward move in other top digital assets. Noting that the Ripple blockchain token could hit $ 1.50 to $ 1.60 next, CrediBULL Crypto, an independent market analyst, cited impulse buying sentiment near the bottom of almost every major cryptocurrency, including Bitcoin (BTC).
$ XRP takes a break from $ 1.25. We’re clearing this up with conviction and heading for $ 1.50 to $ 1.60. Talked about it in my last YouTube video. If you haven’t seen it before, you should probably check it out before this baby goes to the moon
– CrediBULL Crypto (@CredibleCrypto) September 2, 2021
SEC vs. Ripple
The recent spell of buying in the XRP market also appears to be due to speculation that it will be labeled a utility token until the end of the ongoing SEC vs. Ripple courtroom saga. In a lawsuit filed in December 2020, the US regulator accused Ripple Labs and its executives of selling $ 1.3 billion in XRP as “illegal securities”.
Months later, the case has reached a point where both Ripple and the SEC want to look at each other’s internal communications. Ripple stressed that the SEC has labeled the assets of the top blockchains Bitcoin and Ethereum as utility tokens in its internal meetings, and has placed XRP in the same category.
Judge Sarah Netburn of the US District Court for the South District of New York held an online hearing on Ripple’s motion on August 31, from a personal on-camera review of the documents.
The conference call drew attendees from the cryptocurrency community, and many predicted that Ripple is likely to win the SEC lawsuit.
The judge ended the call and it looks very bad for the SEC! #XRP THE STANDARD
– JackTheRippler (@RippleXrpie) August 31, 2021
CrediBULL Crypto also tweeted:
I’m not a lawyer, but I just can’t imagine this case going to court IF Ripple doesn’t want to take it there. The odds against the SEC seem high right now, and a loss in the process would create precedents that could hamper future SEC enforcement actions against smaller fish. $ XRP https://t.co/KLAHMRwxRE
– CrediBULL Crypto (@CredibleCrypto) September 1, 2021
Additionally, Ripple CEO Brad Garlinghouse – also a defendant in the case – said:
“The SEC lawsuit isn’t just about Ripple, it’s about what impossible standards for fair announcement and due process through regulation through enforcement can do with crypto-innovation. Everyone could be next without warning. “
XRP suffered serious reputational damage after the SEC filed suit in December 2020. As a result, it has faced delistings on many leading cryptocurrency exchanges, including Coinbase and Bitstamp. The FUD – Fear, Uncertainty, and Doubt – also pushed XRP / USD prices down more than 66% in the same month.
XRP / USD 1-month candlestick chart with the dump from December 2020. Source: TradingView
It appears that Ripple’s small gains against the SEC have improved XRP’s bullish outlook in the short term.
In addition, Cointelegraph Markets Pro’s VORTECS ™ data identified a bullish outlook that switched from yellow to green on September 1, prior to the XRP breakout.
The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements and Twitter activity.
VORTECS ™ Score (green) vs. XRP price. Source: Cointelegraph Markets Pro
The VORTECS ™ Score climbed from 59 (orange) to 67 (green) on September 2, along with a 22.22% increase in Twitter activity before XRP / USD surged above $ 1.25.
XRP’s recent gains helped its price cross a critical descending trendline resistance that is a bull flag.
XRP / USD 4-hour candlestick chart with bull flag. Source: TradingView
Bull flags represent patterns of consolidation that follow a strong upward movement in price (known as “flagpole”). Investopedia reports that such structures are trend continuation indicators, meaning that flags end up sending prices in the direction of their previous trend.
Related: Ripple Files Application To Uncover XRP Holdings From SEC Employees
As a result, XRP / USD has the prospect of a bull run, especially if it tries to break out of its bull flag pattern to the upside. Should the rally continue, the couple’s next profit target would be as high as flagpole height (approximately $ 0.28).
This puts the bullish target for XRP / USD at $ 1.51.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every step of investing and trading involves risk and you should do your own research when making a decision.