The XRP (XRP) market is well positioned for a price surge from now until October, thanks to a potential breakout on the charts, whale activity, and the end of Ripple’s legal battle with the SEC. In doing so, the XRP/USD pair could finally see value approaching or even surpassing $1, a level it hasn’t reached since 2021.
XRP price is getting closer to a long-awaited technical breakthrough.
The XRP weekly chart shows a symmetrical triangle pattern that has been forming since early 2018. It is characterized by converging trend lines that compress price action.
The cryptocurrency is testing the pattern’s upper trendline resistance and is looking for a successful breakout to pursue an upside push towards the next major resistance level around $1 in the coming months. However, it needs to surpass $0.86, which is about 45% up from current prices and has historically been a significant barrier, especially in January-March 2022 and July 2023.
Other technical indicators also support this bullish outlook. For example, the Relative Strength Index (RSI) on the weekly chart bounced off the 50 level, indicating increasing buying momentum. In addition, the volume profile indicates increasing trading activity, which is often a precursor to continued price action.
XRP Whale Accumulation Increases Bullish Outlook
According to on-chain data from Santiment, most XRP whales have been accumulating tokens in recent weeks.
For example, the XRP supply held by the wealthiest group (black) with more than 1 billion native tokens has increased from 40.27% to 41.44% in 2024. This corresponds to a slight decrease in the group with 100 million to 1 billion XRP balances (turquoise).
Recently, other whale groups have also been accumulating, especially those holding between 1 and 10 million XRP tokens (brown).
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Accumulation among these high-priced cohorts is often a bullish signal. Large investors typically increase their holdings when they anticipate higher prices in the future and use their market influence to promote this.
Ripple vs. SEC Potential Settlement
The long-running legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) appears to be nearing a conclusion.
In 2023, Judge Analisa Torres ruled that XRP is not a security when sold on a digital asset exchange, marking a partial victory for Ripple. However, XRP still qualifies as a security when sold to institutional investors, as it meets the requirements of the Howey Test.
Importantly, the recent meeting between Ripple and the SEC has been postponed to July 25, 2024, where it is expected that a potential agreement will be discussed.
Analysts believe that a favorable agreement could boost XRP’s price. In addition, the potential approval of an XRP spot ETF would further drive market interest and price.
Despite these optimistic signs, some legal experts remain cautious.
Former SEC lawyer Mark Pagel expressed skepticism about the possibility of a settlement, suggesting the case could continue through the legal process. However, Ripple CEO Brad Garlinghouse is optimistic that a resolution can be reached before the end of summer 2024.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.