Ripple Price Analysis: XRP Price Resumes Upswing on Upside Optimism Amidst Heated Battle with the SEC
Daily Ripple XRP Price Forecast
- XRP secures support above $0.85, bolstering the price past $0.9 as $1 beckons.
- Ripple has been granted access to the SEC documents on Bitcoin and Ethereum as court fight intensifies.
- Increase in Ripple-related social mentions signifies a potential retreat in the near term.
Ripple is poised for another run-up after bouncing off support established at $0.85. The retracement on Wednesday affected most crypto assets, including Bitcoin and Ethereum. Ripple has resumed the uptrend, stepping above $0.9 to exchange hands at $0.96. As bulls build the momentum, XRP could surpass the recent highs at $1.2.
The SEC Grants Ripple Access to Documents on Bitcoin and Ethereum
A win by Ripple bolstered the XRP breakout on Tuesday. The blockchain startup got access to the United States Security and Exchange Commission (SEC) documents on how the regulator arrived at categorizing the XRP token as a security. The documents' primary goal is to figure out why Bitcoin and Ethereum are regarded as non-security trading instruments.
The motive or reason behind the categorization is crucial because the SEC alleges that Ripple sold unregistered securities in violation of the US Securities Laws. The case may become a precedent on how and when a crypto asset can be deemed a security. Ripple was granted access to the documents by a US Judge, Sarah Netburn from the Southern District of New York.
Ripple Eyes Upswing Past $1
Ripple dodders at $0.97 at the time of writing. Attention is channeled toward breaking the hurdle at $1, which will likely trigger an upswing past the recent high at $1.2.
The short-term analysis based on the four-hour chart suggests that market stability is back. The Relative Strength Index (RSI) is heading back to the overbought region following the hiccup on Wednesday.
Moreover, the Moving Average Convergence Divergence (MACD) indicator's leveling motion within the positive region implies consolidation may take precedence. The potentially massive breakout would also be validated by the MACD line (blue) crossing above the signal line.
XRP/USD Four-Hour Chart
Ripple's Bearish Outlook
Ripple's social volume skyrocketed in the last few days following the win against the SEC and the surge to highs of $1.2. Santiment shows that XRP-related mentions across thousands of social channels hit a monthly high of 505.
Ripple Social Volume Chart
However, it is essential to realize that a large social volume is a bearish signal. As the volume spikes, the price follows suit. Speculation in the community shoots and so does the number of active addresses.
The bearish outlook comes into the picture because investor sentiment starts to flip negative. Whales get an opportunity to offload their bags, cashing out the profit. This heightens bearish pressure, leading to a significant correction.