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The value of XRP (XRP) surged by approximately 4.25% to $0.461 on May 17, reaching its peak in over a week following a minor victory for Ripple in its legal dispute with the U.S. Securities and Exchange Commission (SEC).
The increase in XRP occurred even as the wider cryptocurrency market, led by Bitcoin (BTC) and Ether (ETH), experienced slight declines of 1% over the last 24 hours.
Ripple achieves a minor victory against SEC
The hourly chart for the XRP/USD pair below illustrates precisely when the price of XRP diverged from the overall crypto market.
XRP/USD hourly price chart. Source: TradingView
The price of XRP notably increased when former defense attorney James K. Filan shared a copy of a judgment from May 16 related to the legal proceedings between Ripple and the SEC.
#XRPCommunity #XRP #SECGov v. #Ripple BREAKING: Judge Torres denies the SEC's Motion to Seal the Hinman documents.https://t.co/wiatz4vCHL
— James K. Filan (@FilanLaw) May 16, 2023
Importantly, U.S. District Judge Analisa Torres rejected the SEC's request to seal the agency’s internal communications that took place following a speech by its former chairman, William Hinman, in June 2018. In that address, Hinman stated that Ethereum’s Ether token does not qualify as a security.
This ruling could potentially steer Ripple towards a legal victory, as it strengthens the case that XRP is not a security.
Simultaneously, Ripple’s seemingly enhanced prospects for success have likely contributed to a 10.5% increase in XRP since May 16, despite a prevailing negative sentiment in the market.
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BREAKING: $XRP price surges after Judge Torres denies SEC's Motion to Seal the Hinman documents, and holds off on #Ripple vs. #SEC verdict, awaits Congress for a regulatory roadmap. pic.twitter.com/JlS0JGBCVR
— WhaleWire (@WhaleWire) May 16, 2023
For example, trading volumes for XRP-related pairs on Binance increased by over 200% within 24 hours as the price rose, indicating that the movement may have underlying momentum.
What lies ahead for XRP price?
Nonetheless, technical indicators are beginning to suggest a bearish outlook, with XRP potentially poised for a price correction in May.
The bears may contend that the so-called Gravestone Doji on XRP’s March 17 candle was validated by a long upper wick and a minimal gap between the token’s opening and low prices. Traditional analysts interpret a Gravestone Doji candle as a bearish reversal signal.
XRP/USDT daily price chart. Source: TradingView
Additionally, XRP is encountering downward pressure from its 50-day exponential moving average (50-day EMA; the red wave) around $0.454 and a short-term descending trendline resistance. Should a pullback occur, XRP is likely to find the next significant support level at $0.42 in May, representing a 5.5% decline from current price points.
Related: Defending against SEC to cost Ripple $200M, CEO Brad Garlinghouse says
On the other hand, a decisive breakthrough above the resistance confluence could drive XRP’s price towards $0.50 as its subsequent target by June.
This article does not provide investment advice or recommendations. Every investment and trading action carries risk, and readers should perform their own research before making decisions.
