XRP/USD closed at 1.0175 after making a high of 1.0944 and a low of 0.8194. On Tuesday, XRP/USD continued its bullish streak for the 9th consecutive session and pushed above $1 for the first time since March 2018. The Ripple Securities and Exchange Commission (SEC)-hearing on Tuesday caused its price to increase to a 3-year high as Ripple fought back hard in its hearing while one might have thought that the US SEC would crush Ripple in the ongoing legal battle.
On Tuesday, the blockchain firm scored its first major win against the SEC followed by the Judge’s decision to allow Ripple’s motion to force the production of documents confirming that Bitcoin and Ethereum are not securities.
On March 15, Ripple’s lawyers filed a motion asking the Federal Judge to mandate the SEC to produce documents that define Bitcoin and Ethereum as non-securities, declaring that the economic substance of XRP transactions was not different from that of the other two legacy digital assets. On April 6, Judge approved Ripple’s motion, and this success in the SEC hearing imposed a positive impact on Ripple’s prices.
The XRP increased by 21% and reached the $1 level for the first time in 3 years. The rally could also be attributed to the latest news about the cryptocurrency market. The entire market capitalization reached $2 trillion amid the recent craze of digital assets, including NFTS, smart contracts, and DeFi. The increased adoption of Bitcoin and Ethereum by big institutions also played an important role in pushing the crypto craze that ultimately proved to be beneficial for other currencies like Ripple.On the USD front, at 18:37 GMT, the IBD/TIPP Economic Optimism from the US remained flat with the anticipations of 56.4. At 19:00 GMT, the JOLTS Job Openings for February advanced to 7.37M against the estimated 6.91M and supported the US dollar. The US Dollar Index fell to a near 2-week lowest level on Tuesday at 92.32 and supported XRP/USD prices.
Daily Technical Levels
Pivot Point: 1.02440Yesterday, XRP/USD traded with a solid bullish bias at the 0.9860 level, having violated the double top resistance area of 0.7548 level. For now, the pair has started retracing back lower to trade at the 0.9774 area as the pair has entered the overbought zone now as the RSI value holds around 84, and the MACD is closing massive histograms.
On the higher side, the pair’s violation is likely to lead the Ripple towards a 1.1750 level. Taking a look at the 20 & 50 periods EMA, these are staying far away at 0.6315, suggesting that the pair has entered the overbought zone, and it should show a little bit of a bearish correction until 0.9122 and 0.7548 before the continuing bullish trend. Let’s consider staying bearish below the 1.02440 level for now. Good luck!
// Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst.
Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D.
Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.