XRP markets react to recent SEC filing, bullish momentum strongest since January 2018

Ripple (XRP) is experiencing its strongest price uptrend since early 2018 off the backdrop of a recent filing by the US Securities and Exchange Commission (SEC). The financial regulator is seeking to overturn a federal court ruling that stated Ripple tokens were not offered to investors as unregistered securities.

XRP has surged by 46% this month, reaching seven-year highs above $3. According to data from CoinGecko, the token’s price experienced a 30% uptick in the past week alone, propelling its market cap to over $175 billion, eclipsing financial asset manager BlackRock’s $156.9 billion.

Analysts have noted that the token’s recent price performance is its fastest ascent since the altcoin boom of January 2018. Moreover, the relative strength index (RSI) indicator shows XRP’s 14-month RSI at 92, the highest level since October 2017. These indicators show that the token’s momentum since the start of 2024 is its strongest in seven years.

Ripple: The SEC challenge is just noise 

The price surge follows the SEC’s January 15 appeal filing with the Second Circuit Court of Appeals. The agency is challenging Judge Analisa Torres’s ruling, which favored Ripple Labs. 

#XRPCommunity #SECGov v. #Ripple #XRP @Ripple The @SECGov has filed its opening brief.https://t.co/v0YTjHGxzV

— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) January 15, 2025

The judge found that while XRP sales to institutional investors constituted unregistered securities offerings, sales to retail investors through exchanges did not. She reiterated that those buyers were unaware of the seller’s identity.

The SEC has requested that the appeals court overturn this decision, arguing that Ripple’s efforts rendered XRP an investment contract under the Howey test, the framework used to determine whether a transaction qualifies as a security. 

On his official X account, Ripple Labs CEO called the financial regulator’s efforts the “definition of insanity.” He pointed out that SEC chair Gary Gensler took Judge Torres’s decision to heart.

One definition of insanity….

Doing the same thing over and over and expecting different results. Gensler's SEC really took this to heart. https://t.co/giV8GiW6qV

— Brad Garlinghouse (@bgarlinghouse) January 16, 2025

Ripple’s chief legal officer, Stuart Alderoty, also dismissed the SEC’s appeal, calling it “a rehash of already failed arguments.” 

“We’ll respond formally in due time. For now, know this: the SEC’s lawsuit is just noise. A new era of pro-innovation regulation is coming, and Ripple is thriving.”

XRP markets reacted positively after the SEC filing news broke out, and the currency is now up by almost 10% in the last 24 hours. However, the reaction wasn’t felt in South Korean markets, where the crypto is down 2% against the local currency in the same period.

XRP derivatives market activity surges 

Per market data, open interest in XRP perpetual futures reached a record 2.34 billion XRP, with funding rates stabilizing around 10%. This represents a much healthier market compared to the unsustainable conditions of early December, when funding rates soared to 100%, which caused weeks of market price corrections.

Analysts have pointed out that the token has entered the breakout stage of a symmetrical triangle pattern, signaling potential for further gains. They predict XRP could rally to $3.80 by the end of January, a 25% upside from current levels.

However, a decline below the triangle’s upper trendline, followed by a deeper correction below the lower trendline, could invalidate the current upward momentum. In this scenario, XRP’s price may drop towards its 200-day exponential moving average (EMA) near $1.32.

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