- Ripple closes the gap to $1.4 after lifting off support at $1.2.
- The SEC prepares to gain some ground in the lawsuit against Ripple later this month.
Ripple appears to be building a bullish momentum after holding onto support at $1.2. Since the beginning of May, the leading cross-border money transfer token has traded within a descending parallel channel. The lower edge has significantly contributed to keeping bearish advances in check.
Meanwhile, the ongoing bullish uptrend has stepped above the channel’s middle boundary, allowing bulls to look forward to an upswing beyond $1.4. Note that XRP is teetering at $1.39 at the time of writing ahead of a break above $1.4.
What to expect for XRP following the May 21 conference
The next hearing in the lawsuit between Ripple and the United States Securities and Exchange Commission (SEC) is slated for May 21. On this day, the SEC hopes that it will gain some ground against Ripple by pressuring the blockchain startup to access legal documents for advice it acquired concerning the regulatory status of XRP.
Presiding on the matter will be Judge Sarah Netburn; hence the May 21 date is essential for both organizations. Investors are waiting for the court’s ruling, keeping in mind that Ripple has made some key milestones in the last few weeks. Another win for Ripple at this stage will be a win for the token and investors at large.
Ripple’s technical outlook points toward $2
The four-hour chart highlights a gradually improving technical outlook. XRP has made commendable steps after ricocheting from $1.2. Currently, the price trades above the channel’s middle boundary, while a break past $1.4 may bolster the XRP beyond $1.5, an area coinciding with the descending channel’s upper edge resistance.
XRP/USD four-hour chart
The Moving Average Convergence Divergence (MACD) adds credibility to the above bullish narrative. In addition to the indicator recovering from the negative region, the MACD line has just crossed above the signal line. A break above the channel may catapult XRP toward $2, especially if the incoming hearing with the SEC favors Ripple.
Looking at the other of the fence
The same four-hour chart reveals resistance at the 200 Simple Moving Average (SMA). Moreover, the 50 SMA has just crossed below the 100 SMA, forming a death cross pattern. In other words, overhead pressure still hovers, and recovery may not come quickly. Besides, the prevailing trend respects the confines of a descending parallel channel.