Why is XRP Price Rallying Today?
The XRP price is trending all over the crypto space, as the asset popped off after Tuesday’s London session and is up 8% at the time of writing. The rise in the price of XRP may be attributed to the SEC retracting its request to the court to classify a handful of cryptocurrencies as securities in its case against Binance. Furthermore, comments from pro-XRP counsel Fred Rispoli have fueled speculation that the August 1 SEC closed-door meeting may result in a settlement of the Ripple lawsuit.
Ripple Lawsuit Likely To Conclude
Speculation about the conclusion of the Ripple-SEC lawsuit flooded the crypto space following the scheduled SEC closed-door meeting on August 1. Much of the speculation stems from pro-XRP lawyer Fred Rispoli, who expects Judge Torres to rule on remedies possibly by July 31.
Additionally, Russia passed a bill to allow international payments with cryptocurrency, a significant move for the XRP price because Russia is a member of the BRICS alliance. This ties in with XRP because Ripple recently collaborated with the National Federation of Associations of Central Bank Servers (FENASBAC) in Brazil, a member of BRICS.
Consequently, the price of XRP hovered around $0.6415 during U.S. market hours on Wednesday, a 7.3% increase over the last 24 hours. The recent rise in XRP has resulted in a breakout that may catapult the asset beyond its previous all-time high.
XRP Price Prepares For Further Gains
The current trend for the XRP price is upward. The price action is trending above both the 50-day (green line) and 200-day (black line) Exponential Moving Averages (EMA), indicating bullish momentum. A golden cross, where the 50 EMA crosses above the 200 EMA, can be seen on the daily time frame, indicating that XRP is entering a period of strong bullish momentum.
The immediate resistance level is around $0.74, which coincides with the previous high. If the price of XRP breaks above this level, the next price target is $0.93. Conversely, a rejection from the current resistance level may push XRP to lower support levels around $0.55 and $0.54, which align with the recent breakout zone and the 50-day EMA, respectively.
The recent candlestick formation shows price breaking out from a bullish pennant chart market structure, which signals an uptrend continuation following a period of consolidation. The price target for the bullish pennant breakout sets the XRP price around $0.84.
Technical indicators support a bullish trend. The RSI is currently at 70.14, indicating that XRP is entering overbought territory. This suggests a pullback or consolidation might occur before further upward movement. The CMF is at 0.22, indicating positive money flow and strong buying pressure.
Despite the bullish sentiment, there is some hint of bearish volume-price divergence on the daily timeframe. This suggests a correction may be due in the short term before the price moves higher.
The post Why is XRP Price Rallying Today? appeared first on CoinGape.
