- Ripple reclaims the position above $1 as new all-time highs beckon.
- Ripple Labs puts The US SEC in the spotlight for pushing an illogical premise.
- A declining network growth suggests that XRP's uptrend could be in jeopardy.
Ripple has from Wednesday shaken off the bears, especially following support established at $0.85. Initially, the cross-border token stepped above $0.9 and $0.95 as covered on Thursday. The bullish leg has been extended above $1, and XRP teeters at $1.03.
Ripple Fiercely Battles the SEC in Court
The lawsuit filed by the United States Securities and Exchange (SEC) could be an example of a regulator over-interpreting its authority to the extent of taking the Congress for a ride. In such a case, the court becomes the solution to a stalemate propagated by the prosecutor—meanwhile, Ripple's win on Tuesday out the spotlight, threatening to bring down the pedestal.
Ripple's legal team can now access the documents related to Bitcoin and Ethereum. The lawyers' task is to question how Bitcoin and Ethereum got a through pass to trade as cryptocurrencies while XRP deemed a security token. If Ripple finally wins this case, it would shake up the SEC's policies, especially those regarding how and when to categorize an asset as a security.
Ripple Builds Upon Newly-Found Support
The international remittance token is trading at $1.03 after reclaiming the ground above $1. The token is also recovering within the confines of an ascending parallel channel. At the time of writing, XRP is pivotal at the short-term channel's middle boundary. Settling beyond this zone could quickly push Ripple beyond $1.2 (recently traded multi-year high).
The Moving Average Convergence Divergence (MACD) suggests that the Ripple is likely to gain momentum in the coming sessions. The fast MACD (main) line crossing above the slow line adds credibility to the bullish outlook. Trading above $1.2 could bolster Ripple to new higher levels towards $2.
XRP/USD Four-Hour Chart
Looking at the Other Side of the Picture
According to Santiment, Ripple's network growth has retreated significantly over the last few days. The number of new addresses created on XRP Ledger hit a 30-day high at 8,269 on April 6 but has dwindled to nearly 5,300, representing a 35.9% decline.
Ripple Network Growth Chart
A low or dropping network growth is deemed a bearish signal because it shows that the project is losing traction in terms of adoption. Moreover, it interferes with the usual inflow and outflow of tokens on the network.