As a seasoned researcher with extensive experience in the cryptocurrency market, I have closely followed the XRP saga and its impact on the token’s price action. The recent rally in XRP is not just a coincidence but a culmination of various factors that have come together to create a perfect storm for investors.
The focus is now turning to XRP, the digital token involved in the protracted legal dispute between its issuer Ripple and the Securities and Exchange Commission (SEC). With the court case approaching its conclusion, the price of XRP has surged, recording a 12% gain in the last 24 hours and a significant 40% rise over the past week.
What’s Driving XRP Price Rally?
The positive perspective towards cryptocurrencies is not limited to XRP but is prevalent throughout the crypto market. This optimism stems from Bitcoin‘s resurfacing above $65,000, Ethereum‘s advancement towards $3,500 in anticipation of spot ETF trading, and Solana’s milestone surpassing $160.
In recent days, XRP has experienced a significant surge in value, rising from a low of $0.4 to reach a high of $0.63 during US trading sessions on Tuesday.
The primary reason for XRP‘s recent price surge is the ongoing legal battle between Ripple and the Securities and Exchange Commission (SEC). Reports of confidential discussions between the two parties have fueled speculation that a resolution may be imminent.
In contrast to Marc Fagel, a prior SEC legal advisor downplaying settlement rumors, the investing public has been actively purchasing XRP tokens, potentially indicating a surge towards the significant price point of $1.
Fagel hinted that the private discussions were merely routine and did not indicate impending resolution in any shape or form. The possibility of reaching a settlement remains uncertain given the current progression of the case.
Fagel commented on X with, “It’s unlikely, but entertaining to ponder,” followed by the announcement of the next clandestine gathering on July 18th.
Over the past few months since the lawsuit was initiated, there have been approximately 150 such meetings. The cryptocurrency community on Twitter had speculated that a settlement was under discussion during each of these gatherings. However, based on current information, this meeting is undeniably the one where a resolution will be reached.
[Narrator: It’s not the one.]
— Marc Fagel (@Marc_Fagel) July 16, 2024
Several lawyers have expressed the view that it would be unlikely for a settlement to occur between Ripple and the SEC, given the favorable rulings Ripple has received in court. However, it’s important to note that a resolution is imminent in this ongoing legal battle. Consequently, the increased trading activity surrounding XRP can be attributed to this expectation of a conclusion.
Should You Buy XRP Now?
The past performance of XRP has underperformed in comparison to Bitcoin and other major cryptocurrencies like Ethereum, Solana, and Binance Coin. However, the market sentiment towards XRP is now showing signs of improvement, which could lead to a change in its fortunes.
Above the $0.6 threshold, XRP experienced its most significant price leap since April. This event represents another effort from the cross-border payments token in striving for remarkable milestones.
The market for XRP derivatives, specifically futures contracts, has experienced a significant jump. Open interest, which represents the total number of outstanding derivative contracts, has risen by an impressive 27%. Furthermore, there’s a demand bias with a long to short ratio of 0.9554. This bullish momentum is supported by a notable 82% uptick in XRP futures trading volume.
In the past 24 hours, Coinglass data indicates approximately $4.26 million worth of short positions were liquidated against about $1.13 million in realized gains from long positions. Additionally, the funding rate has been climbing and now stands at 0.0043, which is determined by open interest.
For individuals pondering over a long-term investment in XRP, it’s essential to take note of the breakdown of the falling wedge pattern evident on the daily chart. A potential pullback might occur before the uptrend resumes and reaches the projected price of $1.
With regard to the wedge formation in XRP‘s price chart, there’s a strong indication that the coin could reach $0.65 next. This level represents a 38% gain since surpassing the upper trendline boundary. The calculation is derived from the height of the wedge pattern itself.
Despite the recent confirmation of a golden cross in XRP‘s price chart, indicating a potential uptrend, it remains an opportune moment for investors to purchase this cryptocurrency. This bullish signal emerged when the 20-day Exponential Moving Average (EMA) surpassed the 100-day Simple Moving Average (SMA).
The Moving Average Convergence Divergence (MACD) indicator gives a buy signal, adding confidence that XRP may begin a new upward trend beyond $0.7, potentially reaching prices above $1.
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2024-07-17 17:35