XRP has experienced a dramatic surge in price, soaring nearly 100% in the past week. Moreover, it has seen an additional 8% increase in value today following a recent court ruling that declared it as not being a security. This ruling has had a significant impact on investor sentiment, as XRP was one of several altcoins that were embroiled in a legal battle with the US Securities and Exchange Commission (SEC).
The positive outcome of the court ruling has provided a glimmer of hope for the broader cryptocurrency market, which has been mired in bearish sentiment. The ruling has also had a positive impact on other altcoins such as Solana and Polygon, which have both experienced price increases of more than 20-30% since the legal decision was announced.
However, the rally in XRP has outpaced that of other altcoins, with its price doubling almost immediately after the court ruling. Although some profit-taking occurred, XRP’s price has stabilized at around 75 cents and has already risen to around 84 cents. This surge in price has sparked speculation about whether XRP will continue to rise or if it will experience a similar failure to produce new highs, as it did in 2020.
An important factor to consider is the quarterly Relative Strength Index (RSI), which indicates that XRP has surpassed a six-year long resistance line. This significant breakout in long-term momentum suggests that XRP could be poised for further upside potential. It is worth noting that high timeframe breakouts, such as those observed on the quarterly RSI, carry more weight and are more likely to be sustained compared to daily or weekly signals.
Related Post
In order for XRP to continue its upward trajectory, it will need to surpass the highs it reached in 2020 and 2021 on the 3-month RSI. This would be a strong buy signal, especially if it occurs after the cryptocurrency has reached oversold conditions. The importance of technical indicators in analyzing XRP’s price movement is underscored by the mention of the Raging Bull indicator, which has recently illuminated on the quarterly XRP chart for the first time in over six years.
In conclusion, the recent court ruling declaring XRP as not being a security has had a significant impact on its price, leading to a surge in value. The breakout observed on the quarterly RSI suggests that XRP may experience further upside potential. To sustain this momentum, it will be crucial for XRP to surpass previous highs on the 3-month RSI. As the cryptocurrency market begins to turn a corner, XRP’s performance will be closely watched to determine whether the current rally will result in new highs or if it will follow the pattern observed in 2020.
