Ripple’s XRP might be in for increased volatility throughout the coming days as there are some interesting upcoming developments that may fuel market participation.
It’s worth noting that the price has been on a somewhat sluggish path throughout the past couple of weeks, demonstrating a clear lack of major volatility and an overall downward movement. Is this bound to change soon?
As CryptoPotato reported earlier last week, the US Securities and Exchange Commission filed an interlocutory brief showing its intention to appeal the ruling of Judge Analisa Torres.
Recall that back in July, Judge Torres was the one who ruled partially in favor of Ripple, claiming that secondary sales of XRP failed to constitute an investment contract.
The SEC had previously expressed its intention to appeal, which was formalized last week. The Chief Legal Officer of Ripple Labs – Stuart Alderoty – responded to the development, slamming their attempts.
The SEC does not have the “right” to appeal just yet which is why they are asking permission to file an “interlocutory” appeal. Ripple will file its response with the Court next week. Stay tuned.
In other words, the market is currently anticipating Ripple’s response to the filing, which may as well fuel some additional participation and result in increased volatility.
From a technical perspective, the XRP price is also approaching a very important support zone. The level in question lies around $0.55.
It holds the potential to stop further downward movement and even initiate an upward rally that might target the critical $0.8 threshold. This is because the zone also includes the pivotal 100-day moving average.
In addition, XRP formed a very rare technical price pattern known as a golden cross on the 3-day chart. It happens when a lower timeframe moving average crosses above a longer timeframe moving average.
That said, it’s widely considered to be a bullish pattern and a very rare one, to that. It has only taken place twice before in XRP price’s entire history.
