XRP is flashing green in a sea of red during the week opening on Monday. Crypto prices are bearish across the board with Bitcoin (BTC) trading at $26,784, down 1.36% over the last 24 hours. The second largest cryptocurrency by market capitalisation, Ethereum (ETH) is also trading in the red at $1,871 after dropping 1.5% over the last day.
Ripple is the only non-stablecoin crypto among the top 10 assets that is not turning down. The price of the cross-border remittances token is up 2.15% over the last 24 hours to trade at $0.5349.
Top 10 Cryptos
The positive sentiment around XRP could be attributed to growing hope among the XRP community that Ripple will come out as a winner in the long-standing case against the U.S. Securities Exchange Commission (SEC).
The latest indication of this possibility comes from a pro-XRP lawyer, John Deaton, who places the chances of the SEC coming out as an outright winner at less than 3%.
Speaking during The Good Morning Crypto podcast on June 3, Deaton tipped a 25% chance that Ripple, the blockchain company behind RXP, will come out as an outright winner, as the end of Ripple vs. SEC case draws near.
John Deaton, the founder of CryptoLaw and a vocal Ripple supporter also tipped a 50% chance that the presiding U.S. District Judge Torres rules in a way that Ripple claims victory by way of a “splitting the baby.”
According to Deaton, Judge Torress could draw a “line in the sand” potentially ruling that XRP was initially offered as an unregistered security before 2018. However, drawing from evidence in the Hinman documents, it is possible that the judge will pronounce himself that cryptocurrencies can move from being securities to commodities once they are sufficiently decentralized.
The Lawyer further explained:
“I think that XRP itself is going to be deemed not a security and that I think that secondary market sales show comment. Even if [Judge Torres] does rule finding that Ripple violated the law, that doesn’t apply to secondary market sales.”
While the “XRP Army” including Ripple CEO Brad Garlinghouse have been forecasting an impending end to the lawsuit, Deaton highlighted that the judge could make his decision known before September 30.
Note that any kind of ruling will significantly affect the price of XRP, the token that powers Ripple’s XRP Ledger ecosystem. Deaton gave his predictions for the XRP price in case of a positive ruling. “I certainly believe that somewhere between $2 and $10 is reasonable”, he said.
In the meantime, XRP has displayed mixed price actions over the last two months characterized by sell-offs, fakeouts and recoveries. Let’s analyze the token’s price action over the last couple of months and see where it is likely to go in the near-term.
XRP Price Displays Strength Above $0.5
After turning away from the $0.584 swing high on May 29, Ripple’s price tumbled 29% to set a swing low at $0.41, where the 200-day Simple Moving Average (SMA) was found. Since then, XRP has recorded a series of higher highs and higher lows in an uptrend that saw XRP holders regain almost all the losses made between March 29 and mid-May.
This price action had led to the appearance of an inverse Head-and-Shoulders (H&S) chart pattern on the daily chart. At the time of writing, the price of the international payments token was fighting resistance from the $0.54 psychological level.
Increased buying from the current level could see XRP rise to tag the pattern’s neckline at $0.5575. Shattering this resistance would see the altcoin escape from the inverse H&S technical formation, confirming a bullish breakout.
The short-term target for the bulls would be $0.60 psychological level. This would represent a 12.35% uptick from the current price.
XRP/USD Daily Chart
Apart from the significantly bullish chart pattern, this positive outlook was supported by the position of the Relative Strength Index (RSI) in the positive region. The price strength at 69 suggested that bulls were in full control of the XRP price.
Also validating Ripple’s bullish thesis was the upward movement of the Moving Average Convergence Divergence (MACD) indicator. This suggested that the market conditions still favored the upside.
On the downside, XRP could extend the ongoing correction with the first line of defense arising from the $0.52 support level. Additional breathing levels could emerge from the $0.5 psychological level or the 50-day SMA below it at $0.46.
