The XRP price made a strong comeback on Tuesday as demand for the cryptocurrency bounced back. Ripple rose to $0.390, which was about 14% above the lowest level on Monday. In all, it has risen by more than 35% from the lowest level in June, giving it a market cap of over $19 billion.
SEC vs Ripple latest update
XRP price has recovered as other cryptocurrencies continue their strong comeback. Indeed, cryptocurrencies like BTC, ETH, and Bitcoin Cash bounced back in the past 24 hours.
This recovery happened even as American stock futures pulled back, with those tied to the Dow Jones and S&P 500 falling by more than 0.70%. At the same time, America’s Treasury bond yields rose to the highest level in years.
The main catalyst for Ripple, stocks, and bonds is the upcoming interest rate decision by the Federal Reserve that comes on Wednesday. Economists expect the Federal Reserve to continue hiking interest rates with another jumbo 0.75% increase.
In most cases, the XRP price tends to react negatively to high interest rates. This happens as large investors rotate from risky assets to safe ones like bonds, which have a positive yield. Indeed, the 2-year and 10-year government bond yields have risen to their highest levels in years.
The other key XRP price catalyst is the ongoing litigation between the SEC and Ripple Labs. In a caught filing, Ripple Labs sought dismissal of the SEC lawsuit saying that XRP was not a security. The company said that XRP did not meet the conditions of being a security since there was no investment contract granting holders rights or requiring the issuer to act in their interest. The statement added that:
“The SEC’s untethered position would convert the sale of all types of ordinary assets – diamonds, gold, soybeans, cars, and even works of art – into sales of securities. Congress has given the agency no such authority.”
XRP price prediction
The four-hour chart shows that the XRP price has been in a strong bullish trend in the past few days. In this period, it managed to move above the important resistance level at $0.3623, which was the highest level on September 10.
Ripple price also retested the important resistance level at $0.3925, where it struggled to move above in August. It has moved above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved slightly above 50. Therefore, the XRP price will likely continue rising as buyers target the next key resistance level at $0.50.