Ripple Jumps 30% Following Landmark Security Ruling
• Last week, a US federal judge ruled that Ripple is a security when sold to institutional investors.
• Ripple’s price jumped by more than 30% following the ruling.
• Bulls will have to push more for Ripple’s bearish trend to end, and need the market to climb above parity with the US dollar for the bearish bias to end.
Ripple Following Landmark Federal Ruling
Last week, a US federal judge ruled that Ripple is a security when sold to institutional investors, resulting in its price jumping by more than 30%.
Impact of Ruling on Price
The decision was hailed as a major victory for Ripple, even though the same judge ruled that it is not a security when sold to retail investors. However, bulls will have to push some more for Ripple’s bearish trend to end and need the market to climb above parity with the US dollar for this purpose. This area has provided resistance since the start of 2022 and still does – after all, it contained the price action following last week’s news.
Bullish Triangle Formation
The good part for bulls is that breakout came at the end of a bullish triangle formation. Triangles like these usually appear at the end of bearish trends and act as reversal patterns. Therefore, there is still hope that an increase in strength could lead to Ripple trading above parity and invalidating its bearish bias.
US Dollar Impacting Price Action
Until then however, look for US dollar news to drive prices further as Ripple remains sensitive towards any changes in this currency’s value – any dollar strength should result in Ripple giving up more of its recent gains.
In conclusion, while last week’s ruling was seen as positive news for Ripple holders due its immediate impact on prices, it remains unclear whether or not bulls can sustain this momentum going forward given their inability thus far to break past major resistance levels at parity with USD.