XRP is recording gigantic increases, while the entire cryptocurrency market is glowing red. Learn the reasons behind these movements and what you can expect in the coming time!
Optimism around XRP is soaring
More than 70% – that’s how much XRP has rallied over the past eight days. At the same time, the coin also broke through the downtrend line it had been under for 17 months. This is an incredibly bullish sign, but we will come to it at the end. First, let’s focus on the fundamentals driving such a dynamic price movement. Here there are three key issues that arise from each other.
What strikes the eye first is the exceptional optimism prevailing around the project. Ripple has been betting on multi-channel development in recent days. It manifests itself in a high level of commitment to the game, which we wrote about a few days ago. For more on this topic, see the article under the title: “Ripple’s XRP-based Ledger game announces important partnership”. Another aspect, for example, is the support of new CBDC initiatives. Recently, there has been some information on the market indicating that Ripple will announce new partnerships in this field in the fourth quarter of this year.
However, what fires up the market the most is the upcoming settlement of the legal battle against the SEC.
Ripple vs. SEC – Time for the finale
There are many indications that as early as December we will learn the outcome of the legal proceedings, in which the SEC accused Ripple of trading in unregistered securities, which XRP was alleged to be. Many market observers, as well as numerous reports, say that the lawsuit is expected to be resolved in favor of Ripple. Both sides in the dispute have asked the judge to grant summary judgment.
Shortly afterwards, via Whale Alert’s Twitter profile, we observed significant whale movements. They manifested an immediate change in sentiment, through a series of multimillion-dollar XRP withdrawals from exchanges to cold wallets. So is the rally we’ve been observing for the past few days right to continue?
XRP from a technical point of view
Looking at the chart, in this case from a weekly perspective, we see that XRP has broken out of an important downtrend line, under which it had been for 17 months. The RSI shows no anomalies here, and the MACD maintains a clear bullish momentum. A return to the breakout level, and a retest of it, is highly likely. Here, success could lend strength to the continuation of the trend.