The Ripple (XRP/USD) price has been one of the best performing cryptocurrencies this week. It has jumped in the past 6 straight days and is trading at the highest level since December 21st. The current price is about 60% above the lowest level this year.
Why is XRP rallying?
There are several reasons why the Ripple price is soaring. First, the rally is part of the overall strong performance by other cryptocurrencies. Bitcoin has moved above $44,000 while Ethereum is comfortably above $3,100. As a result, the total market cap of all cryptocurrencies has jumped to more than $2 trillion.
Second, the XRP price is bouncing back because of the improving market sentiment. A good example for this is the fear and greed index. The closely watched gauge has moved from last week’s low of about 30 to the current 45. This is a sign that investors are getting more comfortable with cryptocurrencies.
The most important reason why this cryptocurrency is rising is because of the ongoing lawsuit between SEC and Ripple Labs. Judge Analisa Torres allowed them to respond to the SEC’s memorandum of Law in support of the Motion to Strike fair notice defence. She also ordered the unsealing of three documents in the case.
For starters, the SEC filed a case against Ripple in December 2020. The suit alleged that the company and its executives raised $1.5 billion without following the due process. They have denied the allegations and hired Mary Jo White as its attorney, Previously, she was a top lawyer at the SEC.
Analysts believe that a victory by Ripple Labs will be a good thing for XRP and other cryptocurrencies. For one, it means that exchanges that removed them will start offering the service.
Ripple Price prediction
The daily chart shows that the XRP price has been in a strong bullish trend in the past few days. As a result, the coin has managed to move above the upper side of the descending channel. It has also moved slightly above the 25-day and 50-day moving averages while the MACD has been in an upward trend.
Therefore, there is a likelihood that the Ripple price will continue rising as bulls target the next key resistance level to watch will be at $1.
The post Here’s why Ripple (XRP) is approaching $1 appeared first on Invezz.
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