XPR (XRP) price is currently outperforming all other major cryptocurrencies as of March 27, rising more than 20% in the past seven days.
XRP Accumulation Before SEC Ruling Vs. Ripple
XRP has seen steady gains over the past seven days as the ongoing legal dilemma between Ripple and the US Securities and Exchange Commission (SEC) It is expected to be completed by the end of March.
Meanwhile, the supply of XRP held by addresses with a balance between 10 and 100 million tokens has risen more than 1% since February. That coincides with a 0.75% drop in the supply of XRP held by the cohort of 1 million to 10 million addresses.
Addresses holding between 1,000 and 1 million XRP also increased their token holdings in the same period. That shows that the XRP whales accumulated more tokens in the days leading up to the so-called SEC vs. Ripple summary judgment.
Multiple observers, including legal expert John Deaton, see Ripple winning the case, arguing that the SEC may not have given the company "fair notice" before suing it for committing securities fraud.
I have no doubt that Ripple will win and the current Supreme Court will close the @SECGovThe gross overreach of . The West Virginia EPA case is all you need to read to agree with me. @VibeThe summary judgment brief is already an extremely well written appellate brief. https://t.co/o3g9zML9S2
โ John E. Deaton (@JohnEDeaton1) February 20, 2023
In recent months, Analisa Torres, the federal judge in charge of the lawsuit, has also favored Ripple on several motions. For example, she has approved Ripple's lawsuit that the SEC makes its emails and internal documents regarding cryptocurrencies public, which may prove that the regulator unfairly attacked the company.
25% XRP price retracement in April?
From a technical perspective, the XRP/USD rally has brought the pair close to a confluence zone of resistance, which may lead to a bearish reversal in the coming weeks.
The confluence consists of a descending multi-year trend line (black), a 200-3D exponential moving average (200-3D EMA; the blue wave), and a horizontal support-turned-resistance level around $0.50. (purple).
Additionally, XRP's three-day RSI forecasts a close above its overbought threshold of 70, adding to the bearish case for April.
Related: Will BTC leave the bear market? 5 things to know about Bitcoin this week
In the event of a pullback, XRP price's next downside target appears at its multi-month rising trendline support (black) around $0.35, 25% below current price levels.
On the other hand, a break above the downtrend line will have XRP priced at $0.60 as the next bullish target.
This level has served as support in December 2021 and January 2022, and as resistance in the September-October 2022 session. It is also the target of a prevailing bull pennant structure.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
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