XRP price went parabolic on Thursday evening as investors continued to focus on the SEC vs Ripple case in the United States. Ripple rose to a high of $0.5083, which was the highest level since Sunday last week. It was also about 25% above the lowest level this week.
Why did Ripple price soar?
The XRP price rose sharply after Ripple scored a major victory against the Securities and Exchange Commission (SEC). On Thursday, the judge overseeing the case ordered the SEC to submit documents related to William Hinman, a former director of the regulator. This is a major victory for Ripple as it seeks to demonstrate that the SEC knew that XRP was not a security.
The SEC has been fighting against delivering a speech that William Hinman delivered in which he claimed that XRP was not a security. In a statement, a lawyer representing Ripple said that the company had spent more than $2 million to get these documents.
Still, there is a lot that we don’t know about the case and how it will end. In my view, I believe that Ripple has built a relatively solid case against the SEC. It can also demonstrate clearly that the SEC singled it out to make a point.
For one, there are more than 20,000 cryptocurrencies in the world. Why hasn’t the SEC brought more charges against others? Also, what is the worst-case scenario in this case? Of course, if Ripple loses, it will likely be asked to pay a fine or make tweaks into its operations.
XRP price prediction
The hourly chart shows that the XRP price made a strong pullback after the new updates by the SEC. It rose to a high of $0.50, which was above the upper side of the descending channel shown in black. The coin rose above the 25-day moving average while volume remains at elevated levels. The coin has formed what looks like a bullish pennant pattern.
Therefore, there is a likelihood that Ripple will continue rising as bulls target the next key resistance at $0.55. A drop below the support at $0.46 will invalidate the bullish view.