While there are negative news on the stock markets, Ripple has experienced an increase of 40% in the last 5 days. As the Ripple lawsuit neared its end, investors increased their interest in XRP with the expectation that Ripple would win the lawsuit.
The lawsuit filed against Binance also contributed to this rise. The CFTC's designation of cryptocurrencies such as Bitcoin, Ethereum (ETH) and LTC as commodities in its petition raised the expectation that the SEC's arguments would falter.
During the rise in Ripple, there was a serious growth in open positions in derivatives markets.
In derivatives markets, money in Ripple contracts increased by 90% to $843 million, according to Coinglass data. This is the highest level since December 2021. Although the increase in the open position level signals that there may be some pullback, it should not be ignored that the market has been rising on fundamental data rather than technical data in recent days.
This case will determine the fate of many altcoins, not just Ripple.
Expectations that many altcoins could face a similar lawsuit if the SEC wins the case could trigger altcoins aversion. A possible win by Ripple as a result of the lawsuit may trigger a general rise in altcoins.
Economist Alex Kruger also drew attention to this and stated that a victory for Ripple against the SEC will kick off the altcoin season.
Technically, when we look at Ripple, we see that it is in an important resistance zone on the weekly chart. We need to see the $0.5867 level break to continue the upside. In a possible pullback before the decision, the $0.4485 level can be followed as support.
If $0.5867 is broken, $0.78 and $0.93 can be followed.