On May 5, Ripple Labs was slammed with yet another lawsuit, this time on alleges of misleading investors and driving false demand by conducting an “unregistered offer and sale of securities.” This is the latest in a string of lawsuits that the US-based company behind the third-largest cryptocurrency by market cap, XRP. And while investors half expected the XRP market to be rocked, the cryptoasset appeared to brush off the news and even continued trading higher over the next couple of sessions.
It’s been an eventful week for Ripple Labs, to say the least, as the renowned fintech company now faces another lawsuit. Bitcoin Manipulation Abatement LLC, a Puerto Rico-based company filed the lawsuit seeking to recover damages over the alleged sale of unregistered securities and making false claims that misled investors.
It may also be recalled that last February 27, the company was unable to have a proposed class-action lawsuit against it thrown out, while on April 21, Ripple sued video-streaming giant, Youtube for failing to properly police its platform against XRP scam videos.
Naturally, any news that potentially bodes ill for a company will affect the market value of its traded assets, but in this instance, the XRP market appears to have largely shrugged off the news as noise.
As news of the latest lawsuit started to circulate, the XRP market did not appear rattled and instead continued posting minute gains over the next few hours. Early the next day, however, the token did slide down a bit but it still settled above the key $0.21 support. At the time of writing, XRP is trading between $0.217 and $0.220.
XRP Predicted to Retain Bullish Outlook
All major cryptocurrencies have been riding Bitcoin’s recent rally ahead of its halving event slated for May 12. Even after hitting stiff resistance levels across the board, the crypto market has since posted impressive recoveries, with BTC reclaiming $9,200 and Ethereum juggling $207 to $215 price levels. It, therefore, comes as no surprise that XRP is maintaining a steady course towards recapturing its recent high of $0.28.
Speaking to Coinpager, CoinFalcon CEO, Jordan Steeves believes XRP’s short-term indicators point toward a continued uptrend, for the time being at least.
“A rising tide raises all ships and the market is currently riding the wave of Bitcoin’s pre-halving rally, so other altcoins may see a rise in price with the potential for corrections after the halving.” He said.
A quick look at the chart above also shows that one more spike in price can take XRP back above the key support of $0.23. Despite the resistance and the resulting correction, the trend has changed to the positive side as the price is well above the 200-day EMA line.