Why is the price of XRP rising today?

XRP (XRP) price jumped nearly 4.25% to $0.461 on May 17, its highest level in a week after Ripple scored a small victory in its legal battle against the US Securities and Exchange Commission (SEC).

XRP appeared to have made gains despite a modest loss of 1% over the past 24-hours despite the broader cryptocurrency market being led by bitcoin (BTC) and ether (ETH).

Ripple scores a small victory against the SEC

The hourly chart of the XRP/USD pair below shows exactly when XRP price diverged from the rest of the crypto market.

XRP/USD hourly price chart. Source: TradingView

Former defense attorney James K. Philen tweeted a copy of the May 16 ruling related to the legal battle between Ripple and the SEC, the price of XRP took a significant jump.

Specifically, US District Judge Annalisa Torres denied the SEC’s motion in June 2018 to seal the agency’s internal communications that occurred after a speech by its former chairman, Willian Hinman. In that speech, Hinman argued that Ethereum’s Ether token is not a security asset.

The decision could propel Ripple to a legal victory given its ability to prove that XRP is not a security.

Meanwhile, Ripple’s chances of winning are on the rise, leading XRP to gain 10.5% since May 16 despite a broader market decline.

For example, trading volume for XRP-related pairs on Binance Enhanced As the price rallied more than 200% in 24 hours, suggesting momentum could be behind the move.

What’s next for XRP price?

However, the technicals are starting to lean bearish with XRP positioned for a possible price correction in May.

The bears would argue that the so-called gravestone doji on XRP’s March 17 candle was confirmed by a long upper wick and a slight gap between the coin’s open and low points. Traditional analysts view the Gravestone doji candle as a bearish reversal pattern.

XRP/USDT daily price chart. Source: TradingView

Moreover, XRP faced downside pressure near its 50-day exponential moving average (50-day EMA; red wave) at $0.454 and a short-term descending trendline resistance. In case of a pullback, XRP will see the next important support in May at $0.42, which is a 5.5% drop from the current price level.

Related: CEO Brad Garlinghouse Says It Costs $200M to Defend Ripple Against the SEC

Conversely, a decisive break above the resistance confluence will propel XRP price towards $0.50 as its next target by June.

This article does not constitute investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.