XRP Price Surges 40%: Is It Time to Invest?
Attention is shifting to XRP, a token that has been caught up in a longstanding court battle between Ripple, the issuing company, and the Securities and Exchange Commission (SEC). As the case nears an ultimate end, XRP price is on the move, up 12% in 24 hours on top of a 40% increase in seven days.
What’s Driving XRP Price Rally?
The bullish outlook is not unique to XRP but spreads across the crypto landscape from Bitcoin’s return above $65,000, Ethereum’s push to $3,500 ahead of spot ETF trading, and Solana’s debut past $160.
However, XRP has in the last few days staged a remarkable rally from its bottoming out level of $0.4 to exchange at $0.63 during US trading hours on Tuesday.
The biggest force behind the sole XRP rally can be attributed to recent developments in the Ripple vs. SEC lawsuit. A series of closed-door meetings between Ripple and the regulator has sparked settlement rumors.
Despite Marc Fagel, a former SEC lawyer dismissing settlement speculations, investors have been scooping up XRP tokens hinting at a possible rally above the coveted $1 milestone.
Fagel implied that the closed-door meetings are nothing but routine and do not in any way suggest settlement. It is also not clear if a settlement is possible at this stage of the case.
“Probably not, but speculating is fun,” Fagel added in a post on X. The next ‘secret’ meeting is scheduled for July 18.
I mean, they’ve had about 150 of these nearly-weekly meetings since the case was filed, and Crypto Twitter was convinced a settlement was being discussed at every one of those meetings, but this is DEFINITELY the one!
[Narrator: It’s not the one.]
— Marc Fagel (@Marc_Fagel) July 16, 2024
Other legal experts have argued that a settlement is not conceivable considering the winnings Ripple has scored against the SEC in the courtroom. Above all, what is clear is that a resolution is on the horizon, hence, the aggressiveness witnessed among traders buying XRP.
Should You Buy XRP Now?
XRP performance has lagged behind that of Bitcoin and other altcoins majors Ethereum, Solana, BNB, and more but this outlook is about to change based on the newly improved market sentiment.
The jump above $0.6 marks the biggest move XRP made since April. This also marks another attempt by the cross-border payments token to achieve unprecedented results.
The XRP derivatives market featuring futures contracts highlights a staggering 27% increase in the open interest, with a long to short ratio of 0.9554. Backing this bullish trend is an 82% surge in XRP futures volume.
Coinglass data points to $4.26 million in short liquidations against $1.13 million long in 24 hours. The funding rate has also been on an upward trend, currently at 0.0043 OI-weighted.
Those who are considering buying XRP for a long-term investment strategy should be aware of the falling wedge pattern breakout on the daily chart. A cooldown could be necessary for the continuation of the rally to $1.
As for the wedge pattern breakout, XRP price seems poised to tag $0.65, marking a 38% target since breaking out above the upper trend line. This target is measured from the height of the wedge.
Nevertheless, a recently confirmed golden cross assures investors it is still a good time to buy XRP. This pattern formed when the 20-day EMA crossed above the 100-day EMA.
The Moving Average Convergence Divergence (MACD) dons a buy signal further reinforcing the chances of XRP starting a new trend above $0.7 while targeting highs above $1.
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