The price of XRP has been on a thrilling roller coaster ride following a recent federal court ruling that stated its sales on crypto exchanges complied with U.S. securities laws. The sheer exhilaration mounted when the XRP price nearly doubled after Ripple’s legal win against the U.S. SEC, inducing investors to speculate if its price rally could possibly reach the $1 benchmark.
Some key indicators kindled the $1 spark. The duration of XRP’s colossal pump harmonized with trading volumes swaying to a 10-month high. The number of XRP whale transactions—wallets holding more than $100,000—rose dramatically, suggesting wealthier investors are plunging into the XRP rally. “If key whale and shark addresses are increasing their supply going into this pump, it is a clear signal that the pump may just be launching and is a harbinger of potential gains,” noted one analyst at data analytics platform, Santiment.
On the flip side, it’s critical to acknowledge that as enticing as the $1 mark is, the potential for XRP to sustain its rally remains uncertain. A recent pullback occurred near a resistance confluence—an amalgamation of a multi-year horizontal trendline and a formidable descending trendline ceiling, indicating the price surge might be slowing down.
Another factor to consider is the weekly relative strength index (RSI) signalling an overbought situation, which implies the potential of a price correction. The XRP price could drop towards its multi-year ascending trendline support near $0.45 by September, translating to a nearly 55% drop from its current price peak.
However, a resounding overbought RSI could also trigger the XRP price to consolidate sideways, possibly sticking around the $0.75-$1 range. If XRP price decisively breaks above $1, the next price target by September would likely be in the neighbourhood of around $1.35, based on a resistance point from a previous session.
In summary, the ripple effects of the XRP price bolstering to nearly $1 are multifaceted. On one end, it could trigger the wealthy to accumulate more, driving the price higher. Conversely, it could be pushed towards a correction due to an overbought market. Thus, standing in the middle of these crosswinds makes it difficult to foretell whether XRP could indeed reach the much-anticipated $1 mark.
Source: Cointelegraph
