It‘s a strong start to the day on Friday for Ripple’s XRP as it reclaims the key level of $0.60, supported by an improvement in the market sentiment towards riskier instruments and cryptocurrencies in general. At the time of writing, XRP/USD is trading at around $0.605.
Since the beginning of this week, the XRP token has been making slow gains, and from a technical perspective, looks set to climb higher. While it may be extremely bullish to say, if the upward momentum builds up and gathers strength, the key $1 level may also be attained in the near-term if this mood continues to hold.
On the fundamentals front, the main development concerning Ripple still remains its ongoing lawsuit with the SEC. There are several experts in the space who have called out the SEC for its sudden decision to go after Ripple seven years after the company launched and started trading XRP, calling it a security instead of a currency in the conventional sense. In its defense, Ripple has also called out the SECs actions asking a very pertinent question as to why its offering should be considered an unregistered security even while the Commission does not deem its peers Bitcoin and Ethereum as securities.
Shifting away from the lawsuit, the XRP could enjoy some support from Visa‘s acquisition of global cross-border payments platform Currencycloud which runs on RippleNet. This development could result in increased use of Ripple’s distributed ledger and offer more credibility to the company going forward.
Key Levels to Watch
On the 4-hour chart of XRP/USD, most of the moving averages as well as the MACD indicator are exhibiting a strong bullish bias among investors. However, the 200 EMA, 200 SMA in addition to the technical indicators momentum and Stochastics RSI are suggesting a bearish bias as well.
The price is sitting just above the pivot point at $0.602 and the next target in sight for buyers will be the immediate resistance at $0.644. If this level gets broken, there can be another test at the $0.699 level which is acting as resistance before Ripples XRP can finally break past the key $0.70 level.
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