XRP price shoots 6% over the past 24 hours despite suffering a slump of 28% on April 16. The crypto was able to bounce back on May 1 and get stronger by the day with a surge of 12%.
XRP is set on its road to recovery in the coming weeks.
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XRPs expected jump would be at 30% in Q2 this year. (Image credit: Dreamstime.com)
Ripple (XRP) Pioneering The Crypto Scene
XRP was one of the frontrunners of the early crypto market alongside Bitcoin and Ethereum. It is was one of the pioneers of the early cryptocurrency market, which experienced massive price hikes in early 2017.
Recently, the crypto together with all other cryptocurrencies has been experiencing turmoil and stunted growth because of political, environmental, and regulatory issues.
The decline was expected but its not a happy state as it is for crypto traders all over the globe. However, unlike others, XRP seems to be recovering and gaining momentum.
Ripple-SEC Legal Battle
XRP is currently trading at $0.61 after experiencing intraday highs of $0.63. Its bullish comeback seems to have been triggered by favorable investor and technical sentiment in spite of setbacks from a lawsuit by the U.S. Securities and Exchange Commission.
Ripple was sued by the SEC for selling securities illegally using XRP. Nevertheless, Ripple seems to be winning in market capitalization from this legal battle.
The Relative Strength Index (RSI) on XRP seems to have come to a maximum point considered as oversold which signals that the heavy selling activity seems to have drained itself dry. With that scenario, investors would normally turn to other entry-point buying opportunities.
XRP total market cap at $29.76 billion on the daily chart | Source: TradingView.com
RSI measures current fluctuations or movements in market price to determine whether a specific coin or asset is oversold or overbought.
The technical analysis indicator of RSI with a reading below 30 would mean that the asset is oversold. Investors seem unfazed even with the SEC lawsuit going on.
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Momentum Despite Legal Brawl
Ripple operates in the perspective that it has already lost the legal battle because it has been dragging for quite some time now. Nevertheless, Ripple is unbothered.
Instead, the company is confident that they are set for a breakthrough in growth especially outside of the United States. XRPs expected jump shot would be at 30% in the second quarter this year.
The current buying sentiment climbed to $0.58 which provided solid support in January this year, pushing XRP to go above 50%. XRP/USD tandem on the daily price charts now provides strong support around the $0.58 level.
It signals a lower trendline with the pattern of a descending triangle that is getting bearish going for $0.18 in the next couple of months.
Overall, XRP seems to have benefited from the ongoing legal tussle with SEC. In turn, XRP has become a speculative asset for traders.
Featured image from VOI, chart from TradingView.com