In a significant development for Ripple’s native cryptocurrency, XRP, its price experienced a substantial surge, reaching a new yearly high of $0.938 on July 13. This surge was primarily fueled by positive news surrounding the ongoing Ripple vs SEC case, as major exchanges such as Coinbase and Kraken re-listed XRP, indicating growing confidence in its legal standing.
The positive momentum in XRP’s price can be attributed to the recent verdict by Judge Analisa Torres, who ruled that Ripple’s sale of its token on public exchanges did not violate securities laws. This decision was met with enthusiasm by the crypto community, as it marked a significant milestone in the legal battle. However, it’s important to note that the case is not fully resolved, as the judge also stated that Ripple had contravened federal law by selling XRP directly to investors. As a result, Ripple still faces the liability of nearly $729 million in sales.
Despite the ongoing legal challenges, the recent surge in XRP’s price is indicative of renewed market optimism. The cryptocurrency had been trading below a descending resistance line since March 29, with multiple rejections along the way, including one on June 22.
However, on July 13, XRP experienced a remarkable 100% increase, breaking out from the resistance line and reaching a new yearly high of $0.95. The positive verdict in the Ripple vs SEC case played a significant role in this breakout, signaling the completion of the correction phase.
While the price has slightly retraced since then and is currently trading below the $0.87 horizontal resistance area, the daily Relative Strength Index (RSI) supports the continuation of the upward trend. Traders often utilize the RSI as a momentum indicator to assess whether a market is overbought or oversold, aiding in their decisions to accumulate or sell an asset. With the RSI reading above 50 and increasing, it suggests a bullish trend for XRP.
However, it’s worth noting that the daily RSI is currently in extremely overbought territory, which may indicate a potential temporary drop and reset before the price resumes its upward movement.
Looking at the longer-term perspective, the weekly outlook for XRP also presents a bullish scenario. The price has broken out from a long-term descending resistance line that had persisted for 700 days, further validating the breakout observed in the shorter-term daily timeframe. The weekly RSI supports this breakout, with a reading above 50 and on an upward trajectory.
While the current price of XRP remains more than 250% below its all-time high of $3.30, breaking above the $0.87 resistance level could pave the way for a swift increase towards the next major resistance at $1.70. Should this occur, it would bring XRP closer to challenging its previous all-time high.
However, despite the optimistic XRP price prediction, a failure to close above the $0.87 resistance area could lead to a significant retracement. In such a scenario, the price might find support at the next level around $0.55.
In conclusion, Ripple’s XRP cryptocurrency has witnessed a remarkable surge, reaching a new yearly high. Positive legal developments in the Ripple vs SEC case have contributed to renewed market sentiment and the re-listing of XRP on major exchanges. While legal battles continue, the recent verdict in favor of Ripple has bolstered the cryptocurrency’s price. Investors and traders are closely monitoring the ongoing developments and potential for XRP to reach new all-time highs. However, market dynamics and further legal outcomes will shape the future trajectory of XRP’s price.
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