XRP price has been among the best performers in the cryptocurrency market in recent days amid relief for Ripple Labs and broader market sentiment. The altcoin has jumped by nearly 10% over the past week, while its year-to-date price remains 57.57%. XRP’s total market cap has increased by 7.85% over the last day to $28.57 billion, ranking the asset 5th after Binance Coin. Additionally, the total volume of the digital asset traded over the same period has jumped by 137%.
Relief for Ripple
XRP price has been in the green for three consecutive days, breaking above the now-bullish support zone at $0.5290. The key catalyst behind XRP’s recovery is the SEC’s move to drop its lawsuit against two Ripple Labs executives. According to a court filing in New York last week on Thursday, the US Securities and Exchange Commission dropped its claims against Ripple Chief Executive Brad Garlinghouse and co-founder Chris Larsen.
In the court papers, the agency indicated that it was dropping its claims that the two Ripple Labs executives aided and abetted the sale of the XRP cryptocurrency which a judge found amounted to unregistered sales of securities. The Wall Street regulator accused Ripple of illegally acquiring more than $1.3 billion in an unregistered securities offering by selling XRP in December 2020.
US District Judge Analisa Torres granted Ripple Labs a landmark court win in the case in July, ruling that XRP was only considered a security when solely sold to institutional investors. Judge Torres subsequently denied SEC’s request for an appeal on the ruling. Even so, she partly ruled in the SEC’s favor, saying that the agency had shown that Ripple’s $728.9 million of XRP sales to hedge funds and other superior buyers had violated the law.
Additionally, the bullish crypto market sentiment has also buoyed the XRP price recovery. The global crypto market cap has increased by 3.50% over the past 24 hours to $1.18 trillion, while the total crypto market volume increased by more than 32%. The Crypto Dear and Greed Index has improved to a Greed level of 55, signaling an increase in risk appetite.
Notably, Bitcoin’s bullish rally has also boosted the overall crypto market sentiment. The premier cryptocurrency is hovering around its highest level since July on the back of confidence for a spot Bitcoin EFT approval. At the time of writing, the lead cryptocurrency was trading at $31,410.45.
XRP Price Analysis
The daily chart shows that the XRP price has been on an upward trajectory for the past few days, breaking above the psychological level of $0.5000. At press time, XRP price was trading 2.43% higher at $0.5353. The asset has moved above the 50-day and 200-day exponential moving averages. Its Relative Strength Index has climbed to 62, suggesting an increase in buying pressure. The Moving Average Convergence Divergence (MACD) indicator is signaling a buy.
Consequently, the XRP price is likely to edge higher in the ensuing sessions as bulls eye the immediate resistance level at $0.5535. A move above this level might pave the way for subsequent gains to $0.600. On the flip side, a drop below the crucial support at $0.500 will invalidate my bullish thesis.