Ripple (XRP) Price Action Surges Past $0.53 as Legal Wins Strengthen Sentiment in 2024

Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) has taken a new turn, as the company confirms its cross-appeal. This development has coincided with XRP’s steady performance, holding above the crucial $0.53 support level. Trading at $0.5370 early Friday, Ripple (XRP) price action is gaining momentum, and improving market sentiment suggests potential further gains in the coming days.

The Ripple (XRP) price action is being closely watched by analysts and investors alike, with many predicting further upward movement. Ripple’s legal battle with the SEC, coupled with its announcement of new institutional custody features, has bolstered market sentiment, with technical indicators suggesting the potential for XRP to gain nearly 5% in the short term. Let’s dive deeper into the factors driving Ripple (XRP) price action.

Ripple (XRP) Price Action: Cross-Appeal in SEC Lawsuit

Ripple has been entangled in a lengthy legal battle with the SEC for over four years. Recently, the payment remittance firm confirmed that it would file a cross-appeal in response to the SEC’s ongoing legal challenges. The SEC had contested the final ruling, in which Ripple was fined $125 million for institutional sales of XRP. This cross-appeal has injected fresh energy into the XRP market, as many see Ripple’s legal stance as a show of strength.

Stuart Alderoty, Ripple’s Chief Legal Officer, emphasized, The SEC’s appeal does not impact the legal clarity around XRP. We remain confident in our position, and this cross-appeal further solidifies our commitment to fight regulatory overreach.

This legal battle has far-reaching implications for the broader cryptocurrency market, as it raises concerns about the regulatory environment in the U.S. and the SEC’s stance on digital assets. As Ripple continues to push back, Ripple (XRP) price action could benefit from renewed investor confidence, particularly if the legal outcome favors Ripple.

One of the critical drivers behind Ripple (XRP) price action is the positive social sentiment surrounding the token. Despite the ongoing legal challenges, XRP holders remain optimistic. The Fear & Greed Index (CFGI) currently shows neutral sentiment, but many analysts believe that positive developments in the lawsuit could push this index toward bullish territory.

Additionally, the broader market’s view of Ripple’s continued innovation, especially its new institutional custody solutions, adds to the positive outlook. These features are designed to cater to institutional investors, a crucial segment of the crypto market that Ripple hopes to attract.

According to market strategist David Reynolds, Ripple’s decision to expand its custody solutions is a smart move. Institutional investors have been waiting for more secure options, and Ripple’s announcement could further boost Ripple (XRP) price action in the coming months.

In an unexpected twist, Bitnomial, a derivatives exchange, filed a lawsuit against the SEC. The exchange claims that the SEC has overstepped its regulatory authority in asserting jurisdiction over XRP futures contracts, which Bitnomial argues falls under the Commodity Futures Trading Commission @CFTC

Bitnomial’s legal action comes at a crucial time for Ripple, as it adds weight to the argument that the SEC’s regulatory approach lacks clarity. This legal support could strengthen Ripple’s position and provide further momentum to Ripple (XRP) price action.

In a recent tweet, Bitnomial announced, Our lawsuit aims to prevent the SEC from overstepping its authority. We believe the CFTC has sole jurisdiction over XRP futures, and we’re confident that the courts will agree.

Technical Analysis: XRP Prepares for Potential 5% Gain

However, XRP faces resistance in the Fair Value Gap (FVG) between $0.5778 and $0.5445. The Moving Average Convergence Divergence (MACD) indicator is signaling declining negative momentum, with smaller red histogram bars indicating that bearish pressure may be weakening.

According to technical analyst Lisa Carter, XRP is showing signs of a possible breakout, with the MACD indicator suggesting declining negative momentum. If it can overcome resistance in the Fair Value Gap, we could see a solid upward move.

The Relative Strength Index (RSI) also shows some promising signs. Currently reading at 42.82, the RSI is below the neutral level, signaling that XRP’s momentum may be turning around. Ripple (XRP) price action could see increased bullish pressure if the RSI rises above 50 in the coming days.

While the overall outlook for Ripple (XRP) price action is positive, investors should remain cautious of potential corrections. If XRP experiences a short-term pullback, liquidity at the October 10 low of $0.5228 could be swept. This would provide a more attractive entry point for buyers, but it also signals a potential downside risk in the near term.

Market analysts are keeping a close eye on these levels, as any correction could provide opportunities for both bulls and bears. However, the broader sentiment remains cautiously optimistic, with many expecting XRP to continue its upward trajectory as Ripple fights the SEC and expands its institutional offerings. Get more from The Bit Gazette