Outside Source
TL;DR
- XRP has seen a substantial price increase in the past month, with analysts predicting further gains if key price levels are surpassed.
- Factors supporting a potential rise include a favorable RSI, high open interest in derivatives, and possible developments in the Ripple v SEC lawsuit.
What’s Next for XRP?
Ripple’s XRP is one of the top-performing leading cryptocurrencies, with its price jumping by almost 30% on a monthly scale. It recently spiked to over $0.63 before settling at the current $0.60 (per CoinGecko’s data).
Numerous analysts, including the X user Dark Defender, assumed that the bullish momentum could continue in the future and lead to new highs. The trader predicted a substantial rise should XRP close the week above $0.6044 and proceed toward $0.66 (depicted as the Ichimoku Clouds).
Earlier this week, Crypto Bull claimed that “something big is loading” for the cryptocurrency. They admitted adding “a huge bag” as of late and promised to keep the stash untouched until the price hits $1 (at least).
Another person who chipped in is X user Crypto Tony. They argued that XRP has been holding steady in the $0.55-$0.65 range, pledging to jump on the bandwagon as an investor should the price reach the upper mark.
It is worth mentioning that some industry participants envisioned more pessimistic scenarios. Cryptoinsightuk suggested that XRP’s valuation could plunge to $0.52 in the following days. However, an ascent above $0.64 would invalidate the forecast, the trader added.
Observing Some Bullish Factors
One important metric signaling that XRP could head north soon is the Relative Strength Index (RSI). The momentum oscillator varies from 0 to 100 and is used to identify overbought or oversold conditions in a market. A score exceeding 70 suggests that a price plunge might be incoming. The ratio is currently set at around 46, while earlier this month, it dropped to an almost one-year low of 12.3.
Despite slightly retracing from the peak registered on July 24, XRP’s aggregated open interest (the total number of outstanding derivative contracts, such as futures or options, that have not been settled) remains high at approximately $600 million. Its increase is generally a precursor of a violent move in any direction.
Last but not least, XRP’s volatility could be triggered by a potential resolution of the Ripple v SEC lawsuit. The entities have been confronting each other for over three and a half years with the battle currently being in its trial phase.
Ripple secured three vital (yet partial) court wins last year, with XRP’s price heading north after each one. That said, a positive outcome for the company might once again benefit the asset’s holders.
There were some rumors that a settlement might be discussed during the SEC’s latest closed-door meeting on July 25. However, the regulator has not announced any developments on the matter yet.
Those willing to learn more about the lengthy case and how it may affect XRP’s price, feel free to take a look at our dedicated video below:
This article first appeared at CryptoPotato
