Ripple saw a massive increase in trading volume over the last 20 hours. This comes as no surprise as positive fundamentals buoy the current situation.
Ripple’s two-year legal struggle over whether XRP, as the SEC claims, is a security and whether two of its executives violated the Securities Act of 1933’s registration regulations, which established the “Howey Test” for securities, is about to come to an end.
However, lawyers argued that XRP should not be regarded as an investment contract, and the firm does not directly issue the token and claims. In addition, they claimed that XRP does not pass the Howey Test that determines what constitutes a security.
With this evidence, the SEC will lose the lawsuit against the crypto firm. In response, we observed the FOMO amongst investors.
Ripple (XRP) Gains More Than 23%
The sixth largest cryptocurrency by market reacted positively as it is currently up by more than 23%. It is also worth noting that the asset peaked higher than its current price.
It attempted the $0.50 resistance but stopped in its tracks as selling pressure increased. Nonetheless, it peaked at $0.49 and is currently struggling to hold on to the $0.45 support. It is hard to say that the level may hold as indicators are not looking healthy.
The first to consider is the Relative Strength Index. As of the time of writing, the metric is above 70. Currently at 74, XRP is overbought. We may conclude that Ripple may close lower than expected. Nonetheless, a change in market conditions may alter predictions.
In Coming Days
We may see either of these two scenarios play out. The asset under consideration may experience small surges and may retest the $0.5 resistance. The Moving Average Convergence Divergence agrees with this as we noticed that it is still on an uptrend.
On the other hand, the situation with RSI is a cause for concern. Based on this metric, we may conclude that XRP may see a notable decrease in price in the next few days.
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