The price of Ripple (XRP/USD) increased over the weekend as investors followed the ongoing saga between Ripple Labs and the Securities and Exchange Commission (SEC). The XRP price soared to a multi-week high of $1.2290, nearly 42 percent higher than the previous month’s low.
Case of Ripple Labs and the SEC
The SEC filed a major lawsuit against Ripple Labs and some of its top executives in December of last year. The case revolves around whether XRP should be classified as a security or a digital currency similar to ETH and Bitcoin. The SEC contends that XRP is a financial security that it should regulate.
The case has been ongoing for several months. The most significant delay occurred a few months ago, when the judge presiding over the case allowed the SEC to continue its fact-finding mission. In a letter sent last week, Ripple Labs accused the SEC of improper conduct during the investigation.
Specifically, it accused the SEC of failing to respond to its 30,000 Requests for Admission (RoA) filed with the agency. The SEC claims that the RoAs are unnecessary and that it took more than 100 hours to respond to the first 254 requests.
Even after a big week in which Stellar Foundation inked a blockchain deal with MoneyGram, the remittances company, the XRP price has risen. The company will offer USD Coin, a stablecoin offered by Circle, as part of the agreement. Stellar technology is used to create the token. It means that MoneyGram transactions may soon be possible in near real-time.
The agreement between Stellar and MoneyGram is noteworthy because Ripple Labs has a similar agreement with the company. When the SEC filed the lawsuit, the deal was put on hold.
The XRP price also increased during a period when other cryptocurrencies remained stable. Bitcoin is still trading comfortably above $50,000, while Ethereum is trading above $3,600.
XRP price forecast
The four-hour chart shows that the XRP price has been in a significant bullish trend in recent weeks. The currency has formed an inverted head and shoulders pattern, which is notable. And, over the weekend, the coin managed to break through the neckline of this pattern, reaching $1.1300. In price action analysis, an inverted H&S pattern is typically interpreted as a bullish signal.
It also surpassed the 25- and 50-day moving averages. As a result, the coin is likely to continue rising as bulls aim for the next key resistance level at $1.300.