Ripple price rose by over 25% on Thursday amid hopes over a positive court ruling over the SEC lawsuit. Despite the easing in early Friday trading, it remains above a level that has been a steady resistance level for months.
What’s driving the market?
Ripple price hit $0.5000 for the first time in four months on Thursday. In recent months, $0.4000 has been a steady resistance level for the altcoin. Interestingly, the aforementioned level had been a steady support level for about a year prior to May 2022.
Since the beginning of September, its value has risen by over 50%. In comparison, Bitcoin price- the leading cryptocurrency by means of market capitalization – has dropped by close to 5% from where it began in the current month. Similarly, Ethereum has declined by about 17% during this timeframe.
The rallying in ripple price is largely due to the improved market sentiment as relates to the prolonged SEC lawsuit. Over the past weekend, Ripple Labs’ defense lawyer, James K. Filan filed a motion for summary judgment on the validity of XRP as a security. This legal process requires the court to present judgment based on the availed facts as opposed to ordering a trial. Prospects of a positive court ruling has attracted more buyers; an aspect that explains the 27% surge recorded on Thursday.
Ripple price prediction
On early Friday trade, XRP/USD traded above the long-term descending trendline highlighted in red for the second session in a row. On a daily chart, it is trading above the 25 and 50-day exponential moving averages. A look at both the fundamental and technical indicators points to further gains in the ensuing sessions.
In particular, the range between 0.4625 and 0.5241 will be worth watching. Even with a pullback, ripple price will likely hold steady above 0.4230. In fact, a move below this level will invalidate this bullish thesis.