Will XRP Price Continue to Rise After Court Victory?

Ripple wins XRP case against SEC, XRP price surges 35%.

On July 13th, Ripple achieved a major victory in the XRP case in the United States District Court for the Southern District of New York. Judge Analisa Torres ruled in favor of Ripple, overturning the case initially brought against them by the Securities and Exchange Commission (SEC) in 2020.

In the recently filed documents, Judge Torres issued a summary judgment that decisively supported Ripple's claim over the SEC. The judgment confirmed that the XRP token sales conducted by Ripple, which were at the center of the case, should not be classified as securities.

This ruling had an immediate impact on the price of XRP, which surged by over 35% following the decision. The ruling effectively cleared a significant portion of Ripple's operations from being targeted by the SEC's regulatory actions.

The court's decision recognized that the Programmatic Sales and sales made by Ripple executives Chris Larsen and Brad Garlinghouse did not meet the criteria for being considered investment contracts.

However, it's important to note that the ruling only partially resolves the legal dispute with the SEC. While the court invalidated the investment contract designation for Programmatic Sales and other forms of distributions, there are still other aspects of the case that remain in dispute.

As a result of the ruling, the value of XRP experienced a surge from $0.45 to $0.62, reaching a yearly high. This price level had not been seen since early May of the previous year.

Looking at the daily chart, XRP saw an impressive 34% increase, trading at $0.62. Over the course of the week, XRP gained nearly 30%. However, it's worth noting that at the time of writing, the token was considered to be oversold, indicating the possibility of a price retracement in future trading sessions.

Historically, when XRP reached $0.60, the price has often experienced a sharp drop shortly after. The coin currently faces resistance at $0.67.

If XRP manages to move above this level, it could help the token sustain its gains for a longer period. In the event of a price pullback, the first level of support can be found at $0.57, with a drop below that potentially taking XRP down to $0.50.

From a technical perspective, there is excessive bullish strength in the market, with demand and accumulation showing significant positivity.

The Relative Strength Index (RSI) is currently above 80, indicating that the token is overbought and potentially overvalued, increasing the likelihood of a price retracement.

However, it's expected that demand will remain positive as long as the price stays above the 20-Simple Moving Average line (red), which coincides with the $0.58 price mark.

The Moving Average Convergence Divergence (MACD) indicator, which reflects price momentum and trend reversals, is showing a tall green histogram, signaling a potential buying opportunity. The next few trading sessions will be crucial for XRP as its price trajectory unfolds.