‘sell the news’ moment approaches after crypto-leading 20% weekly gain
The XRP (XRP) price is currently outperforming all other major cryptocurrencies as of March 27, rising over 20% in the past seven days.
XRP Accumulation Before SEC vs. The Ripple verdict
XRP has seen steady gains over the past seven days as the ongoing legal quandary between Ripple and the US Securities and Exchange Commission (SEC) is expected to end at the end of March.
Meanwhile, the supply of XRP held by addresses with a balance between 10 million and 100 million tokens has increased by over 1% since February. That coincides with a 0.75% drop in XRP supply held by the 1 million-10 million address cohort.
The addresses with between 1,000 and 1 million XRP also increased their token holdings during the same period. It shows that XRP whales piled up more tokens in the days leading up to the SEC vs. Ripple’s so-called summary judgment.
Several observers, including legal expert John Deaton, see Ripple winning the case, arguing that the SEC may have failed to give the company “fair notice” before suing it for securities fraud.
I have no doubt that Ripple will win and the current Supreme Court will shut down @SECGovis gross overreaction. The West Virginia EPA case is all you need to read to agree with me. @Ripplehis summary of the judgment is already an extremely well-written appeal. https://t.co/o3g9zML9S2
— John E Deaton (@JohnEDeaton1) 20 February 2023
In recent months, Analisa Torres, the federal judge overseeing the lawsuit, has also favored Ripple in various motions. For example, she has approved Ripple’s demand that the SEC release its internal emails and documents regarding cryptocurrencies, which could prove that the regulator unfairly targeted the company.
25% XRP price move in April?
From a technical perspective, the XRP/USD rally has brought the pair close to a resistance confluence zone, which could lead to a bearish reversal in the coming weeks.
The confluence consists of a multi-year descending trend line (black), a 200-3D exponential moving average (200-3D EMA; the blue wave) and a horizontal support-turned-resistance level around $0.50 (purple).
Additionally, XRP’s 3-day relative strength index (RSI) is looking close above its overbought threshold of 70, adding to the bearish case for April.
Related: Will BTC Drop the Bear Market? 5 things to know in Bitcoin this week
In the event of a pullback, XRP price’s next downside target appears at its multi-month rising trendline support (black) around $0.35, down about 25% from today’s price level.
On the other hand, a breakout above the descending trendline would have XRP price looking at $0.60 as the next upside target.
This level has acted as support in December 2021 and January 2022 – and as resistance in the September-October 2022 session. It is also the goal of a prevailing bull pennant structure.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
