XRP (XRP) has experienced a significant surge in price following a recent federal court ruling that deemed its sales on cryptocurrency exchanges compliant with United States securities laws.
On July 14, the XRP price encountered a minor setback, dropping by approximately 10% to $0.76. Nevertheless, it still maintained a notable 65% increase compared to the previous day’s lowest price.
During the past 24 hours, the XRP/USD pair reached its highest level at $0.93, marking its strongest performance since December 2021, coming close to breaching the $1 mark.
Analysis suggests that the ongoing surge in XRP’s price may not be a mere short-term reaction to the positive news regarding Ripple.
Several indicators point to the involvement of significant players in driving this rally. Notably, the duration of XRP’s substantial price increase coincides with a 10-month high in trading volumes.
Additionally, the number of XRP whale transactions, involving wallets holding over $100,000, has reached its peak in 2023, indicating support from wealthy investors.
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The fact that whales have been accumulating XRP rather than selling during this rally suggests their intent to position themselves for further gains.
Entities holding a balance of 100,000 to 10 million XRP tokens have seen an increase in supply, further bolstering this notion.
While XRP may test the crucial $1 level in the coming days from a technical perspective, the likelihood of its rally extending beyond that appears weak at present.
The pullback experienced on July 14 coincided with a resistance confluence formed by a long-term horizontal trendline and a descending trendline ceiling.
Furthermore, the weekly relative strength index (RSI) for XRP has entered overbought territory, increasing the possibility of a correction.
In the event of a pullback, the XRP price could decline towards its ascending trendline support near $0.45 by September, representing a 55% decrease from the current price level.
Alternatively, an overbought RSI could result in the XRP price consolidating within the $0.75–$1 range.
If the XRP price successfully surpasses the $1 mark, its next target by September is likely to be around $1.35, a resistance level observed during the August to December 2021 period.
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