XRP Price Skyrockets 20% After Ripple Vs SEC Lawsuit Winds Up

XRP price is towering high above the crypto horizon as the crypto community breaks into jubilation to celebrate the end of a longstanding lawsuit between Ripple and the Securities and Exchange Commission (SEC).

XRP Price Jumps On Ripple Vs SEC Lawsuit End

XRP price exploded 20% on Thursday, erasing the entire Monday crash, thanks to the conclusion of the case between Ripple and the SEC. The crypto community anticipated a settlement from early July, with multiple Ripple’s XRP transfers fuelling speculation.

However, the presiding Judge, Analisa Torres, ruled on Wednesday that Ripple pay $125 million in civil fines. The judge also imposed an injunction warning the blockchain against future securities law violations.

Finally over…for now. Thanks again James! Here are my quick takeaways on the ruling:https://t.co/IqdlxMz22C

— Fred Rispoli (@freddyriz) August 7, 2024

The SEC sued Ripple in December 2020 for allegedly violating US Securities Law with the sales of its issued token XRP. The first ruling on the case in July 2023 exonerated secondary sales of XRP, such as those conducted on exchanges. However, Ripple still had a case to answer over direct institutional sales.

It is a major milestone for Ripple at the moment, considering the $125 million penalty imposed. However, the SEC will likely appeal both rulings in the coming weeks, which could further complicate matters for XRP.

Technical Indicators Turn Bullish As XRP Rallies

XRP price rally continued after a brief pause above $0.5 support and resistance at $0.52 on Wednesday. Following the news of the lawsuit ending, traders flocked to XRP markets, driving the price to test the $0.64 hurdle on Thursday.

At the time of writing, Ripple price hovered at $0.618 as various indicators, including the Relative Strength Index (RSI), amplified the uptrend. Holding at 69, the RSI reveals a strong bullish conviction among trends who would be willing to bet on a further increase to $0.7 and later extend the rally past $1.

The 50-day Exponential Moving Average (EMA) is about to flip above the 50-day EMA, forming a golden cross. This is a bullish pattern, signaling a new bullish outlook.

Increasing open interest in the futures market in tandem with volume is another bullish signal to consider. Coinglass data shows OI rising 50% in 24 hours to $1.19 billion.

Ripple price chart | Tradingview

Traders must be vigilant amidst the drastic price increase. Some people may decide to sell after achieving key profit margins following the upswing from Monday’s $0.43 low, thus encouraging a build-up of overhead pressure. A daily close above $0.6 support is required to affirm the bullish move, with declines below the same level likely to push XRP price down to $0.55.

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