XRP Leads Gains In Recent Crypto Recovery

By Kevin • February 7, 2022 9:41 pm • Comments

The cryptocurrency market has recently experienced a significant price recovery for the first time as the majority of the beginning of the year was dominated by a bear trend.

Both Bitcoin and Ethereum had increased by about 3% in the past 24 hours with analysts speculating that the catalyst for the recent recovery may have been caused by the release of stronger than expected U.S. jobs data.

XRP in particular led the recover of all the other altcoins with an increase of around 16% which was higher than all other competitors.

Trending: Federal Reserve Chairman Jerome Powell Say Federal Reserve Cannot Own Bitcoin

Bitcoin had also been adopted by two major credit unions which could have provided more price support in the market and spurred positive investor sentiment.

CoinDesk reports:

“Despite U.S. jobs data on Friday being better than expected, global markets responded positively to the news, as investors admire the strength of the labor market,” Marcus Sotiriou, an analyst at cryptocurrency brokerage GlobalBlock, said in an email to CoinDesk.

“This positive reaction ignited a bounce for the crypto markets too.

Bitcoin broke out of two similar downtrends on the RSI within the past year, which both resulted in incredible rallies, hence potentially foreshadowing a Bitcoin rally to the upside,” Sotiriou said.

The relative strength index (RSI) is an indicator that measures the magnitude of price changes over a certain time period. RSI readings above 70 are considered overbought, and those below 30 indicate an asset may be oversold.

The RSI level on bitcoin reached 61 during European trading hours on Monday after a jump from an “oversold” level of 20 in January, when the cryptocurrency traded at $35,550.

Bitcoin was trading above $42,500 at the time of publication, with possible resistance at $46,000.

Bullish sentiment also seems to continue to persist among investors even with the possible future actions of the Federal Reserves to start tightening monetary policy in order to battle inflation.

Many see crypto as an alternative asset that can be used as a hedge against inflation and as a way to preserve the value of wealth for larger institutions.

The major coins were not the only ones to experience growth as all coins within the top ten market capitalization had experienced significant recovery.

XRP caught the most attention from investors as the coin had a 16% increase to over $0.77 which had coincided with the release of positive news regarding the Ripple vs. SEC case.

Yahoo reports:

Ripple’s XRP token led gains among major cryptocurrencies with a 16% increase to over $0.77.

The price surged amid positive sentiment around the court case in which the U.S. Securities and Exchange Commission alleges the blockchain-based payments firm sold XRP as an unregistered security to the public.

In the latest proceedings last week, New York Southern District Court Judge Analisa Torres ordered the unsealing of three documents in connection with the case.

Torres also granted the payment giant’s request to file a response to the motion to strike fair notice defense.

That defense focuses on whether Ripple had reasonable notice from the SEC about whether XRP sales were illegal, according to law firm Hogan & Hogan.

Industry experts and attorneys who are familiar with the case are now optimistic that a verdict could be reached sooner than expected as the recent decision from Judge Torres will allow the case to finally make some progress.

XRP is currently in a positive bull trend and could continue to rise to $0.79 if the trend persists.

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