The price of XRP has experienced a significant surge following a federal court ruling that confirmed its compliance with U.S. securities laws. While the cryptocurrency’s value nearly reached $1, investors are questioning whether the rally can continue.
After the court ruling, XRP’s price almost doubled, reaching $0.76 on July 14. This represented a 65% increase compared to the previous day’s low. At its peak in the last 24 hours, the XRP/USD pair came close to hitting $1, marking its highest level since December 2021.
Several indicators suggest that XRP’s price surge may not be a short-term reaction to positive news for Ripple. The duration of the rally correlates with a surge in trading volumes, which reached a 10-month high. Additionally, the number of XRP whale transactions (wallets holding more than $100,000) has also increased significantly in 2023, indicating support from wealthy investors.
Analysts observe that if key whale and shark addresses continue accumulating XRP during this rally, it could signal that the upward momentum is just beginning and portend further gains.
Despite these bullish factors, there are technical considerations to keep in mind. XRP faces a resistance confluence near the $1 mark, consisting of a multi-year horizontal trendline and a descending trendline ceiling. Furthermore, the weekly relative strength index (RSI) for XRP has become overbought, increasing the likelihood of a correction.
In the event of a pullback, XRP’s price could potentially drop towards its multi-year ascending trendline support at around $0.45 by September, representing a decline of approximately 55% from the current level. Other potential price targets include the token’s 50-week exponential moving average (50-week EMA) near $0.48 and the 200-week EMA near $0.50.
Alternatively, if XRP manages to decisively break above the $1 resistance level, its next target could be around $1.35 by September, a resistance level previously observed in the August-December 2021 period.
Investors should remember that this article does not provide investment advice or recommendations. It is crucial to conduct thorough research and consider the risks involved before making any investment or trading decisions.