The price of Ripple (XRP / USD) surged over the weekend as investors watched the ongoing circus between Ripple Labs and the Securities and Exchange Commission (SEC). The price of XRP rose to a multi-week high of $ 1.2290, which was about 42% above the lowest level in September.
Ripple Labs and SEC case
In December of last year, the SEC filed a major lawsuit against Ripple Labs and some of its top officials. The core of the case is whether XRP should be classified as a security or a digital currency like ETH and Bitcoin. The SEC argues that XRP is a financial guarantee, which it should monitor.
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The case has continued in recent months. The biggest delay occurred a few months ago when the judge overseeing the case allowed the SEC to continue its investigative mission. And in a letter last week, Ripple Labs accused the SEC of its practices during the case.
Precisely, he accused the SEC of not responding to his 30,000 Admission Requests (RoA) that he filed with the agency. The SEC argues that RoAs are unnecessary and that it spent more than 100 hours responding to the first 254 requests.
The price of XRP also rebounded even after a major week in which the Stellar Foundation signed a blockchain deal with MoneyGram, the remittance company. The deal will see the company offer USD Coin, a stablecoin offered by Circle. The token is created using Stellar technology. It means that MoneyGram transactions could soon occur in near real time.
The deal between Stellar and MoneyGram is notable as Ripple Labs has a similar deal with the company. The deal was suspended when the SEC filed the lawsuit.
The price of XRP also rallied at a time when other cryptocurrencies were stable. Bitcoin comfortably held above $ 50,000 while Ethereum is above $ 3,600.
XRP price prediction
The four-hour chart shows that the XRP price has been in a major uptrend in recent weeks. In particular, the coin has formed an inverted head and shoulders pattern. And over the weekend, the coin managed to move above the neckline of this pattern at $ 1.1300. In price action analysis, an inverted H&S pattern is usually a bullish signal.
It also moved above the 25- and 50-day moving averages. Therefore, the currency is likely to continue to rally as the bulls target the next key resistance at $ 1,300.
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Read More: What’s next after Ripple’s bounce? Invezz