XRP price is slowing down from its winning streak this week. The international money remittance token, issued by Ripple, jumped a whopping 75% from $0.3200 to $0.5615 between September 16 and September 23. XRP price successfully navigated a week characterized by numerous external forces related to inflation and the global economy.
XRP price’s strong week stems from a growing investor interest – and optimism that the case Ripple faces against the Securities and Exchange Commission (SEC) may soon end. Ripple and the SEC filed motions for summary judgment to compel the judge to dismiss the case before trial and rule in their favor.
The SEC filed the case against Ripple Labs and its top executives in December 2020 for allegedly selling unregistered securities. Nearly two years after the filing, the lawsuit still drags on.
No one knows how the court will handle the motions for summary judgment. However, XRP price would benefit immensely if the ruling favored Ripple Labs. FXStreet recently reported that the two conflicting parties might soon have a window to agree on a settlement. Nevertheless, this is unlikely to be the outcome with the latest developments.
The XRP community is extremely bullish following the development in court. On the other hand, XRP is doddering at $0.4901 after pulling back from its five-month high at $0.5615. The 200-day SMA (Simple Moving Average – purple) provides the payments token with immediate support.
As long as the 200-day SMA remains unbroken, investors won’t need to worry about losing the weekly accrued gains. However, a sell signal from the TD Sequential indicator reveals that selling pressure may be building, and a reversal is in the offing.
XRP/USD daily chart
The call to buy to XRP manifests in a green nine candlestick, but traders must confirm the actual sell order by checking whether the low of the sixth and the seventh candles in the count is exceeded by that of the eighth and ninth bars.
It is essential to remember that the bear market is still on – and so are the chances of a pullback. Traders looking for possible exit points should consider the 200-day SMA analyzed above. On the downside, new entries can be made around the resistance turned support at $0.3800.