Bull Run or a Major Correction?

TL;DR

XRP has seen a substantial price increase over the past month, with analysts predicting further gains if key price levels are breached. Factors supporting a potential upside include a favorable RSI, high open interest in derivatives, and possible developments in the Ripple lawsuit against the SEC. What’s Next for XRP?

Ripple’s XRP is one of the best performing leading cryptocurrencies, with a price increase of almost 30% on a monthly basis. It recently rose to over $0.63 before settling at the current $0.60 (according to CoinGecko data).

Numerous analysts, including user X Dark Defender, assumed that the bullish momentum could continue in the future and lead to new highs. The trader predicted a substantial upside if XRP closes the week above $0.6044 and moves towards $0.66 (represented as Ichimoku clouds).

Earlier this week, Crypto Bull claimed that “something big is brewing” for the cryptocurrency. They admitted to adding “a huge bag” lately and promised to keep the stock intact until the price hits $1 (at least).

Another person who participated is X user Crypto Tony. They argued that XRP has remained stable between $0.55 and $0.65, and pledged to jump on the bandwagon as an investor if the price reached the upper mark.

It is worth mentioning that some industry participants predicted more pessimistic scenarios. Cryptoinsightuk suggested that the XRP valuation could fall to $0.52 in the following days. However, a rise above $0.64 would invalidate the forecast, the trader added.

Looking at some bullish factors

An important metric signaling that XRP could be heading north soon is the Relative Strength Index (RSI). The momentum oscillator ranges from 0 to 100 and is used to identify overbought or oversold conditions in a market. A score above 70 suggests that there could be a drop in prices. The ratio currently stands at around 46, while earlier this month it fell to a near one-year low of 12.3.

While retreating slightly from the July 24 peak, XRP’s aggregate open interest (the total number of outstanding derivative contracts such as futures or options that have not been settled) remains high at roughly 600 million of dollars Its increase is generally a precursor to a violent movement in any direction.

Last but not least, XRP volatility could be triggered by a possible resolution of Ripple’s lawsuit against the SEC. The entities have been facing each other for more than three and a half years and the battle is currently in a test phase.

Ripple scored three vital (yet partial) court victories last year, with XRP’s price heading north after each one. That said, a positive result for the company could once again benefit the holders of the asset.

There were some rumors that a deal could be discussed during the SEC’s last closed-door meeting on July 25. However, the regulator has not yet announced any news in this regard.

Those who want to learn more about the long case and how it may affect the price of XRP, feel free to check out our dedicated video below:

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