After securing a commended partial victory against the United States Securities and Exchange Commission (SEC), the market capitalization of Ripple Labs’ XRP token has surpassed the BNB coin native to Binance to become the world’s 4th largest cryptocurrency by market capitalization.
Judge Analisa Torres ruled partially in favor of Ripple Labs on July 13th in a case brought forward by the SEC which dates back to 2020, granting summary judgment in favor of Ripple Labs after ruling XRP is not a security, yet only in regards to programmatic sales which occur on digital asset exchanges.
In the wake of the news, XRP rocketed to highs of up to $0.8875 on the day, sending its market cap to more than $42.5 billion. Trading volume propelled by a tenfold and that saw the token to soar from 7th to 4th place with regards to market cap.
In its rapid climb, XRP beat BNB and USDC to now be only be surpassed by Tether (USDT), Ethereum (ETH) and Bitcoin (BTC) in the race towards first place. Nearly doubling in price in a matter of hours, the new ruling is clear to have sparked a fresh wave of interest for the popular cryptocurrency.
Missing the $1 price-tag by a hair, the massive price pump may witness the token to test the key $1 level soon, but XRP's weekly relative strength index (RSI) has gone overbought, which seems to suggest that a correction is in store.
Our readings indicate that the next resistance mark lies by the $0.92 level, which is an ‘overbought’ zone given the retraction witnessed in XRP’s price once the recent bullish breakout occurred. Breaking the $0.55 resistance effortlessly, this may mark as the coin’s new support level.