On July 13, Ripple won significantly in U.S. District Court for the Southern District of New York in the XRP case. Judge Analisa Torres reigned in favor of Ripple in a case originally brought by the Securities and Exchange Commission (SEC) in 2020.
In recently filed documents on July 13, Judge Torres issued a preliminary injunction, firmly supporting the payments company Ripple and its claim against the SEC. The verdict confirms that XRP token sales by the payment company, at the center of the case, are not classified as a security.
The decision immediately affected the XRP price, which rose by more than 35% after the ruling. The ruling ensured that a significant portion of Ripple’s business was not targeted by the SEC’s crackdown.
The court decision acknowledged that the programmatic sales and sales by Ripple executives Chris Larsen and Brad Garlinghouse do not qualify as investment contracts.
However, the ruling only partially resolves the legal dispute with the SEC. The court has invalidated the designation of the investment contract for Programmatic Sales and other forms of distribution, but other items remain in contention.
The value of XRP has risen from $0.45 to $0.62. This price increase has caused XRP to reach an annual high. At the beginning of May of the previous year, the coin reached this price level.
XRP Price Analysis: One Day Chart
On the daily chart, XRP is up an impressive 34%, trading at USD 0.62. Over the course of the week, XRP is up nearly 30%. However, at the time of writing, the token was considered oversold. It suggests that a price pullback is possible in the coming trading sessions.
In the past, when XRP reached $0.60, the price fell sharply shortly after. The coin is facing overhead resistance at $0.67.
Moving above this level allows XRP to hold its gains longer. If there is a drop in price, the first support line is at $0.57. A drop below this level would send XRP down to USD 0.50.
The technical outlook points to excessive bullish strength, with demand and accumulation turning significantly positive.
The Relative Strength Index is above 80, suggesting that the token is overbought and overvalued, increasing the likelihood of a price revision.
However, demand is expected to remain positive if the price remains above the 20-Simple Moving Average line (red), which coincides with the $0.58 price level.
The Moving Average Convergence Divergence reflects price momentum and trend reversals and shows a large green histogram, indicating a buy signal. The next few trading sessions will be crucial for XRP.
Featured image from Fox Business, chart from TradingView.com