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Investing.com – The 5th largest cryptocurrency on the market by capitalization, significantly outperformed most of its peers in terms of performance this Monday morning, posting a gain of more than 8% over 24 hours and more than 22% over a week at the time of writing this article.
For comparison, we note that the decline is 1% over 24 hours, and increases by less than 2% over a week.
However, this large outperformance of XRP can be explained by new hopes regarding the lawsuit between its issuer, Ripple, and the SEC, the American stock market watchdog, although no new official information has been revealed.
Hope for a favorable outcome for Ripple in its SEC lawsuit fuels XRP’s takeoff
We can, however, note that on Sunday, lawyer and partner of Hogan & Hogan Jeremy Hogan shared his point of view on the SEC v Ripple case, showing pronounced optimism.
Let us first recall that the SEC filed charges against Ripple last year, accusing it of having issued an unregistered security by marketing XRP. However, a few months ago, Justice ruled that Ripple had not broken the law regarding sales of XRP via exchanges.
On the other hand, the courts considered that Ripple had violated the law by selling XRP directly to institutions. The question now is what Ripple’s penalty will be.
However, Hogan estimated that the massive penalty of $770 million requested by the SEC could be greatly reduced.
Hogan noted that the law allows the SEC to seek disgorgement, interest and penalties.
“As California’s Second Court of Appeal recently confirmed, the restitution amount must be awarded to the victims. Victims mean individuals or entities who lost money on an investment. So, if a buyer of .
He further noted “that the SEC sues a company for selling an unregistered security and during the litigation the price of the security increases? This is very rare. And it could be another indication that the security is not ‘is not a title.’
Jeremy Hogan summed up his assessment of the deal by saying that, “in conclusion, $770 million will NOT be $770 million, but something much less.”
Furthermore, another legal specialist, the founder of CryptoLaw US and amicus curiae lawyer, John E. Deaton, also shared his optimistic point of view the day before.
“The people who argued that the SEC got a 50-50 victory in the Ripple case are 100% wrong. It’s more like 90-10 in Ripple’s favor. If Ripple ends up paying $20 million or less, it’s a 99.9% legal victory,” he declared.
Technical thresholds to watch on XRP
From a graphical point of view, we note that the is approaching the major psychological threshold of $0.70, which could act as resistance.
Another factor calling for caution regarding XRP’s rise is the fact that the RSI indicator is sitting very high in overbought territory, suggesting that a correction is imminent.
On the other hand, the 50-day moving average has just crossed above the 200-day moving average, which is a fundamental bullish signal.
If sellers take control and Ripple corrects, the $0.65 area will be the first potential support.