On Tuesday, the XRP token used during Ripple’s payment services network leaped as much as 22% in 24hrs to reclaim a $40 market capitalization of approximately after reports suggested that the blockchain payments firm’s court battle with the US Securities and Exchange Commission had taken a positive turn (SEC), reports protocol.com
It rose past Cardano’s ADA tokens and Solana’s SOL to become the sixth-largest cryptocurrency.
Early Asian hours of trading saw the price hit $0.91, a high not seen since the beginning of January. However, at the time of this writing, the token has dropped 5 cents to $0.86. If the price remains above current levels, additional resistance exists at $1, while support exists at $0.80 if the price falls below current levels.
A relative strength index (RSI) rating of 80, on the other hand, indicates that a decrease is likely in the next few days. The RSI is a tool that calculates the amplitude of price fluctuations over time. Readings above 70 suggest that an asset is overbought, while readings below 30 indicate that it is oversold.
Rise In XRP Price
The rise in XRP comes after US District Judge Analisa Torres of the Southern District of NY upheld that sealed records in Ripple’s legal dispute with the Securities and Exchange Commission over whether the token was created and traded as unregistered security should be opened.
Chris Larsen, the founder and chairman of Ripple, had previously maintained that letters provided to market participants in 2012 did not object to XRP as securities or investment contracts, and had filed two memos as concealed exhibits to his application to quash the SEC case. The documents are claimed to contain material from unnamed lawyers who concluded that XRP tokens were not securities. Torres requested that the materials be opened later this month last week.
In a press statement, the general counsel of Ripple, Stuart Alderoty described the significance of the materials. “They will indicate that Ripple received a legal study in 2012 indicating that XRP wasn’t just an investment contract,” Alderoty said, attaching that the firm “looks forward to all the people having access to documents as we continue to fiercely fight this matter.”
According to some observers, these developments indicate that the case is nearing its conclusion, which might lead to a further increase in the price of XRP.
In a Telegram message, CEO of Crypterium, Vladimir Gorbunov said, “Ripple’s outlook remains unclear because market conditions have altered considerably over the previous few years.”
