XRP Price Surges 48% Following Ripple’s Legal Victory, Eyes on Potential Breakout
Between August 6 and 7, XRP experienced a remarkable 48% surge in price after Ripple secured a favorable ruling in its ongoing lawsuit against the U.S. Securities and Exchange Commission (SEC). While initial market sentiment suggested that XRP could push past the $1 mark, current conditions have kept it below this threshold.
Adding to the positive momentum, Ripple’s Chief Legal Officer, Stewart Alderoty, bolstered investor confidence by stating on Thursday that the SEC has only a 10% chance of winning an appeal, should it choose to pursue one. This statement likely contributed to the bullish sentiment among XRP investors.
At present, XRP has recorded a modest 0.2% increase over the past 24 hours, trading around $0.566.
XRP Price Breaking Out of a Falling Wedge
As of 8:21 a.m. UTC, XRP appears to be breaking out of a falling wedge pattern, potentially paving the way for a 9% surge to the previous monthly high of $0.625.
Since August 7, XRP has been consolidating within this falling wedge, a technical pattern often signaling a potential bullish reversal, especially when it follows a significant downtrend.
Despite this, the 50-period Exponential Moving Average (EMA) suggests the overall trend remains slightly bearish. XRP may encounter resistance at $0.5835 and $0.6228, aligning with previous highs and the upper boundary of the descending wedge.
The Relative Strength Index (RSI 14) currently hovers around neutral, indicating a balanced market with no strong bias toward either upward or downward movement. However, the RSI has shown some recovery from previous oversold conditions, which could support a bullish breakout.
XRP price is currently sandwiched between the 21 and 50 EMAs, reflecting market indecision. Without a significant increase in trading volume to confirm the breakout, XRP may continue to range outside the falling wedge.
A decisive break and close above the 50 EMA could signal market strength and a potential shift in momentum toward the upside.
Conversely, if bears dominate and the asset fails to break out, XRP could see a 5% decline to the lower boundary of the falling wedge. This would invalidate the current bullish outlook, potentially setting new downside targets at $0.5156 and $0.4951.
XRP Futures Traders Show Strong Interest
XRP Futures traders appear to be driving recent price action. The ongoing impact of Ripple’s legal win over the SEC continues to fuel bullish sentiment in the market.
A critical metric to watch in this context is the funding rate, which provides insight into market dynamics by showing the cost paid by one side of the market to the other to keep positions open.
Between August 13 and 15, XRP’s funding rate increased from 0.00039% to 0.00069%. Despite this rise, XRP’s price fell by 5.48% over the same period, indicating that while spot traders are becoming more cautious, futures traders are positioning for a potential strong upswing.
As XRP struggles to break above the $0.56 level, underlying bullish factors suggest a potential upward breakout, with $0.62 as the next major resistance level to watch.
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