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In the wake of a federal court decision that classified XRP sales as compliant with U.S. securities regulations, XRP (XRP) saw a notable price increase. Although there was a slight decline on July 14, with a 10% drop to $0.76, XRP still recorded a remarkable 65% rise compared to the lowest price from the previous day.
Within the last 24 hours, the XRP/USD pair reached a peak of $0.93, representing its best performance since December 2021, nearly touching the $1 threshold. This persistent rise in XRP’s price is influenced by factors that extend beyond a mere short-term response to favorable news regarding Ripple.
Indicators point to the participation of major players fueling this upward movement. The length of XRP’s significant price rise corresponds with a 10-month high in trading volumes. Furthermore, the number of XRP whale transactions involving wallets with balances exceeding $100,000 reached a peak in 2023, suggesting backing from affluent investors. The accumulation of XRP by whales during this surge indicates their strategy to position themselves for additional profits. Entities holding between 100,000 and 10 million XRP tokens have also increased their holdings, further supporting this idea.
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Nevertheless, while XRP may approach the critical $1 level in the upcoming days, its rally beyond that point appears to be fragile. The pullback on July 14 coincided with a resistance confluence created by a long-term horizontal trendline and a descending trendline ceiling. Additionally, the weekly relative strength index (RSI) for XRP has entered the overbought zone, heightening the chances of a correction.
Should a pullback occur, the XRP price might retreat towards its ascending trendline support near $0.45 by September, indicating a 55% decline from the current price level. Conversely, an overbought RSI could lead to the XRP price stabilizing within the $0.75-$1 range.
If the XRP price successfully exceeds the $1 mark, its next target by September is likely to be around $1.35, a resistance level noted from August to December 2021.
As XRP continues its upward movement, it will encounter obstacles, including potential resistance levels and the risk of a correction due to an overbought RSI. Investors and traders should carefully observe these elements and proceed with caution in the volatile cryptocurrency market.
The post Whales Back XRP Rally, $1 Target Within Reach appeared first on BitcoinWorld.
