Ripple’s native token, XRP, is showing signs of a significant price rally after breaking out from a year-long consolidation phase. The latest price action suggests XRP could surge by as much as 75%, especially after speculation surrounding U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler’s potential resignation.
For over a year, XRP had been trading in a range, facing resistance and struggling to gain momentum. However, recent price movements have shifted sentiment drastically. XRP has broken out of an ascending triangle pattern, with the weekly chart confirming the bullish trend. The crucial breakout occurred when XRP closed a daily candle above the $0.75 level, signaling the end of a long consolidation phase and the start of a new uptrend.
According to technical analysis, XRP’s next major target is $1.35, representing a 75% rally from its recent breakout. The $0.75 level, once considered a key resistance, now acts as a solid support level, reinforcing the strength of the current upward movement. The path to this level, however, may face some challenges, particularly near the $0.90 price point, where XRP has previously encountered significant selling pressure. This level could present a hurdle, but the growing bullish sentiment around XRP may help it push through.
As XRP approaches the $0.90 mark, traders should expect some resistance. Historically, the $0.90 level has acted as a strong point of selling pressure, causing price corrections in the past. However, the current market conditions, combined with the speculation surrounding SEC Chairman Gary Gensler’s potential resignation, could create the momentum needed for XRP to breach this resistance.
If XRP manages to break above $0.90, it could quickly rally toward the $1.00 mark and beyond. Technical indicators are currently favoring bullish price action, with XRP trading well above the 200 Exponential Moving Average (EMA) on the daily chart. This is a positive signal, as the 200 EMA is often seen as a key indicator of the prevailing trend.
One of the key factors driving XRP’s bullish sentiment is speculation surrounding the potential resignation of SEC Chairman Gary Gensler. Gensler has been a controversial figure in the cryptocurrency space, with many crypto advocates criticizing his aggressive stance against digital assets. If he were to step down, it could lead to a shift in the SEC’s approach toward cryptocurrencies, which may favor more positive regulation for tokens like XRP.
The news has created a sense of optimism among traders, fueling a surge in XRP’s trading volume and open interest. The possibility of a more crypto-friendly SEC is boosting investor confidence, particularly as the market looks for clarity regarding XRP’s legal battle with the SEC.
Supporting XRP’s bullish price movement, on-chain metrics show a notable increase in market sentiment. XRP’s Long/Short ratio has jumped to 1.18, the highest it has been since August 2024. This suggests that the majority of traders are now holding long positions, indicating a strong belief in continued price appreciation.
The surge in open interest (OI) is another positive sign for XRP. Over the past 24 hours, XRP’s OI has increased by 24%, with a 12% spike in just the past four hours. This indicates growing interest and participation in the market, which could fuel further price gains in the coming days.
As of now, XRP is trading near the $0.80 level, having gained over 18% in the past 24 hours. The price surge is accompanied by a 35% increase in trading volume, signaling strong participation from both retail and institutional investors. The heightened market activity suggests that XRP’s breakout is not a short-term spike, but rather the beginning of a more sustained rally.
With the potential for a 75% upside rally to $1.35, XRP is looking bullish in the near term. However, traders should be cautious of any resistance at the $0.90 level, as this could cause short-term price fluctuations. If XRP can hold above the $0.75 support and break through the $0.90 resistance, it is likely to continue its upward trajectory towards the $1.35 target.
The broader crypto market sentiment, as well as developments in the regulatory landscape, will play crucial roles in XRP’s next moves. If Gensler’s resignation leads to more favorable regulatory conditions, XRP’s price could gain even more momentum, potentially reaching new highs in the months ahead.
Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche. Send a tip to: 0x200294f120Cd883DE8f565a5D0C9a1EE4FB1b4E9
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