XRP price rose to $0.40 on growing bullish sentiment around the cryptocurrency.
On Wednesday, bulls took advantage of positive news in the Ripple Labs vs. SEC case to retest a key price zone.
The price prediction for XRP also looks at the prevailing technical picture.
XRP, the cryptocurrency at the center of the Ripple Labs versus the US Securities and Exchange Commission (SEC) court battle, has traded higher over the past few days amid growing positivity among investors.
Silvergate’s liquidation news has seen XRP price retreat below the round figure of 40 cents. However, bulls appear to be in charge and are holding to the main support base with the price 2.9% up over the past week.
XRP price short term outlook: All eyes on SEC vs. Ripple
As noted above, the XRP cryptocurrency has pared some of the gains with sideways trading on Thursday as the broader market slipped on negative Silvergate news. Despite this, bullish sentiment around XRP/USD remains high.
Indeed, bulls are likely to target fresh gains that could see XRP retest resistance at highs of $0.40 reached on Wednesday.
This particular upside momentum had a lot to do with yesterday’s ruling by a US judge, who handed Ripple Labs a crucial boost by striking off one of SEC’s expert witnesses. Experts believe the ruling has dealt a “fatal” blow to SEC’s quest for a summary judgement.
I agree with this 💯 In fact, I decided to do a live stream that just ended discussing the possibility or maybe likelihood of a jury trial to prepare folks. Scott’s analysis is on 🎯 and I believe the expert’s preclusion is fatal for the SEC’s summary judgment motion. https://t.co/uR6n98TOeS
— John E Deaton (@JohnEDeaton1) March 7, 2023
The SEC’s lawsuit against Ripple goes back to December 2020 and the latest development has an increasingly optimistic market rooting for a belated upsurge in XRP price following what’s largely been a downtrend.
XRP price prediction: Whale activity
Whale activity over the past few days has added to the sentiment, with on-chain data showing massive buying for the cryptocurrency.
Coins have moved from exchanges this week, with Whale Alert highlighting one such transaction that saw over $10 million in XRP transferred from the Bitso crypto exchange.
🚨 28,400,000 #XRP (10,794,884 USD) transferred from #Bitso to unknown wallethttps://t.co/59h4deBdjG
— Whale Alert (@whale_alert) March 7, 2023
XRP price prediction: What is the technical picture?
The price of XRP has broken above a key downtrend line on the daily chart, and is hovering above the 50-day moving average. As can be seen on the chart below, XRP/USD did break above its 200-day average to suggest bulls were having an upper hand.
XRP price daily chart showing potential support and resistance areas. Source: TradingViewAlthough price is back below the 200-day MA, the upside reversal is likely to continue given the Relative Strength Index (RSI) is above 50 and rising.
If bulls break the resistance around $0.40 with conviction, increased buying could catapult XRP to the previous support zone around $0.45. The next target lies around the November 2022 supply zone at $0.50.
A breakdown in the short term could however include a retest of support at $0.33, which forms part of the key trendline since June 2022.
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