Ripple's $125M Fine Sends XRP into 30% Rally: Will it Reach $0.70?
thecryptobasic.com 08 August 2024 15:11, UTC XRP price has surged by more than 30% in the last 24 hours as markets reacted to a favorable ending to Ripple’s long-running lawsuit against the US SEC. Is it a precursor for a $0.70 breakout?
Ripple vs. SEC Case Ending Triggers 30% XRP Price Rally.
On August 7, a New York District Court ordered RippleLabs to pay a fine of $125M following a ruling the company engaged in over 1,200 violations of securities laws.
This final ruling is considerably lower than the US authorities $1.9 billion penalties package initial demand. Despite efforts by the SEC to challenge the decision, their attempt to appeal proved unsuccessful.
Although she did not explicitly state that Ripple had committed any infractions beyond those identified in the SEC’s lawsuit, she expressed concern over the company’s aggressive tactics, particularly regarding its payment services.
In reaction to this news XRP price recorded a major breakout, outperforming all mega cap assets in the top 20 crypto market rankings.
Looking at the chart above, XRP price rebounded 48.63% as it rose as high as $0.64 on Aug 7 before consolidating above the $0.61 level at the time of writing on Aug 8.
While the global crypto market has made healthy recovery from the historic lows recorded on Aug 5, XRP has now broken out ahead of rival assets, due to bullish tailwinds from the Ripple judgement. Technical indicators suggest that XRP is now poised to make its way towards the $0.70 during the next bullish market phase.
XRP Price Forecast: $0.70 Rally Ahead?
XRP has demonstrated a significant bullish momentum over the past three days, surging 48.63% from a low of $0.5789 to the current price of $0.6188 as of August 8, 2024. This sharp rise comes after a period of consolidation and a subsequent dip, indicating a potential reversal in market sentiment. The recent price action suggests that XRP might be poised for further gains in the coming days.
Key technical indicators support this bullish outlook. The Parabolic SAR (Stop and Reverse) dots, currently positioned below the price, suggest an ongoing upward trend. The Moving Average Ribbon, comprised of various SMAs (20, 50, 100, 200), shows that XRP has recently moved above the short-term 20 SMA at $0.5858, indicating strengthening bullish momentum.
The next significant resistance level to watch is $0.70, a psychological and historical resistance point that, if breached, could propel XRP to new highs.
On the downside, the 20 SMA at $0.5858 now acts as a crucial support level. Should the price retrace, additional support is found at $0.5438, where the 50 SMA is located. A break below these levels could signal a shift back to bearish sentiment, but as long as XRP remains above these supports, the bullish trend is likely to continue.
