The crypto market was flashing red on Friday with Ripple (XRP) conspicuously standing out with unexpected gains. The global crypto market value had dropped 2.68% in 24 hours to $1.11 trillion.
Bitcoin led the losses among the top cap cryptocurrencies with a 4.48% decrease on the day, sliding below the crucial $27,000 mark to trade at $26,294. This was followed by Ethereum which was down 4.37% to $1,751.
Other top non-stablecoin cryptos were also trading with a bearish bias including Binance Coin, Cardano, and Dogecoin which recorded daily losses of 3.15%,1.35%, and 1.70% respectively.
Top 10 Cryptos
Meanwhile, XRP was gaining, up 4.28% over the last hour and 2% on the day. This could be attributed to the recent support it has received from a lobbying group regarding its lawsuit against the US Securities and Exchange Commission (SEC).
In December 2020, the SEC sued Ripple Labs, the company behind XRP, and two of its top executives for selling “unregistered securities.” The court battle has gone on for several years now and Ripple has begun finding support.
Recently, the international remittances company was joined by Coinbase, the largest crypto exchange in the US, which is also fighting the agency as it asks whether the crypto industry should be regulated using existing SEC frameworks.
The latest support comes from the Chamber of Commerce (CoC), the largest lobbying group in the US, acting as a highly influential organization representing companies in all industries across the country, including crypto.
In a brief this week filed in the Coinbase vs. SEC case, the CoC states that the regulator has been acting “unlawfully” in the crypto space. It cites a range of regulatory crackdowns witnessed in the US over the last few months stating:
“As it stands today, nobody knows for certain which digital assets, if any, are ‘securities’ under federal law.”
The lobbying group also made three very important arguments according to Lawyer MetaLawMan. They Include:
- Regulatory uncertainty is killing innovation in the U.S.
- The SEC is destabilizing the digital assets regulatory environment.
- The SEC is violating Constitutional Due Process and Fair Notice rights.
The attorney appreciated the significance of this support saying:
“The largest, most influential, business organization in the U.S. has just declared it stands with crypto. “
The support of such a powerful organization could end up being a game-changer for the case since the court would consider the points made by the Chamber.
Consequently, not only does this increase Ripple’s chances of wining the case with the SEC, it could also positively impact the tokens price.
XRP responded to the news with a 6.15% uptick to $0.44. Could the bulls sustain the recovery?
XRP Price Suppressed By The 100-day SMA
At the time of writing, Ripple was at $0.42 and was fighting immediate resistance from the 100-day SMA at $0.43. This dynamic barrier has underpinned the international remittances token for the last four days.
Note that the Relative Strength Index (RSI) is facing up, an indication that bulls have begun returning to the market. In addition, XRP was trading above a crucial support at $0.41 which could provide the hindwinds required to propel the token higher.
Note the XRP price bounced off this level in late March, exploding 42% to set a swing high at $0.58. Therefore, demand from the same area could propel Ripple past the 100-day SMA to confront resistance from the 50-day SMA at $0.48.
Overcoming this barrier would clear the path for a rise to the $0.58 range high reached after the March rally. Such a move would represent a 36% uptick from the current price.
XRP/USD Daily Chart
On the downside, a daily candlestick close below the $0.41 support floor would be detrimental for the cross-borders payments token. This would trigger massive sell orders that might see XRP drop toward the demand zone between $0.4 and $0.30.
