- Ripple’s response to the SEC lawsuits dares to prove how Ethereum and Bitcoin are not securities.
- XRP bulls are eager to make gains at $0.1, but they must overcome the $0.75 hurdle first.
- A correction will come into the picture if XRP fails to close the day above $0.6.
Ripple is trending higher during the weekend session. This week’s trading generated a significant return on the cross-border token, considering that it fell to $0.35 in the previous week. The least resistance appears to be bullish as Ripple is trading at $0.63. The bulls are focused on $1, but they should cut the resistance at $0.75.
Ripple seeks regulatory clarity
Ripple Lab’s Inc. A US blockchain startup, in response to a Securities and Exchange Commission (SEC) lawsuit. In the lawsuit, Ripple denied all the accusations against it and its top officials. The Securities and Exchange Commission alleges that Ripple failed to register with it at the start of its operations and has been evading the regulator for seven years.
Ripple came up with another development for the SEC to provide information proving that Bitcoin (BTC) and Ethereum (ETH) are not securities. The battle for regulatory clarity appears to have begun for Ripple, and the road could be bumpy. On the other hand, XRP is hitting weekly highs despite the uncertainty.
Ripple is extending the ascending leg towards $1
XRP is preparing for an eventual rally to $1 after closing the day above $0.6. The recovery from the recent decline has been ongoing and steady. All eyes are on the short-term resistance at $0.75, which will act as a starting point to $1.
The bullish outlook was reinforced by the Moving Average Convergence Divergence (MACD). The MACD (blue) line crossing above the signal line is a bullish signal, which means that the uptrend is likely to advance to higher price levels. This technical indicator tracks the direction of the asset and measures its momentum. It can also be used to identify potential and existing entries in the market.
4 hour chart XRP / USD
XRP holders are currently on a buying spree according to the Sentiment Bearer Distribution Scale. After pumping two weeks ago, the whales emptied their pouches in large quantities. However, the token seems to be attracting them again. For example, addresses containing between 1 million and 10 million XRP have risen from 1,117 on February 1 to 1,151 at the time of writing, an increase of 3%. If this buying pressure continues, we can expect XRP to rise to $1 quickly.
ripple holder distribution
Looking at the other side of the fence
It is necessary to realize that XRP may start a correction from a rally that fails to rise above $0.75. Moreover, the bulls should defend the support at $0.6 as if their lives depended on it. Otherwise, Ripple could see selling pressure increase, especially with the cloud of uncertainty hovering above it.
The most important support is at $0.5 at the 50 simple moving average, but the key support at $0.35 will come in handy if the declines rise.