In the past 24 hours, the XRP/USD pair surged to $0.93, reaching its highest performance since December 2021 and approaching the $1 level. Behind this rise is a federal court ruling stating that XRP sales on cryptocurrency exchanges comply with United States securities laws. In this article, we will examine the factors influencing the increase in XRP price. #XRP #Ripple #SEC $XRP
Factor Analysis:
While the rise may be related to Ripple, analyses indicate that this rally is not solely influenced by Ripple. Various indicators suggest the involvement of significant players. Particularly, the duration of XRP's price increase coincides with a 10-month increase in trading volume.
Furthermore, the number of XRP whale transactions reached its peak in 2023, indicating the support of wealthy investors. The accumulation of XRP by whales during this rally demonstrates their intention to gain more profits in the future. Additionally, there is an increase in the supply of institutions holding balances between 100,000 and 10 million XRP tokens, indicating support from major players.
Technical Analysis:
From a technical perspective, while it is likely that XRP will test the significant $1 level in the coming days, the probability of the rally extending beyond that currently appears weak. The drop experienced on July 14 coincided with a resistance point where a long-term horizontal trendline intersects with a descending trendline.
Moreover, the weekly relative strength index (RSI) for XRP has entered the overbought zone, increasing the likelihood of a correction. In the case of a correction, the XRP price could drop to around $0.45, representing a 55% decline from the current price level. Alternatively, the overbought RSI could result in XRP price consolidating in the $0.75 - $1 range.
Predictions:
If the XRP price successfully surpasses the $1 level, the next target would likely be the $1.35 level observed from August 2021 to December 2021, possibly by September.
In Summary:
XRP has shown a significant price increase in recent days, and analyses indicate that this rise is not solely due to Ripple. Factors indicating the involvement of significant players and technical analyses suggest the possibility of continued price growth for XRP. However, the overbought RSI and resistance points also indicate the possibility of a short-term correction. Investors should consider these factors and monitor market conditions when making their own decisions.
