XRP (XRP) is up 17% in the last 24 hours, outperforming the rest of the cryptocurrency market as its rally cools.
XRP rose as much as 24% from a low of $0.6833 on November 14 to hit a 16-month high of $0.8479, according to data from Cointelegraph Markets Pro and TradingView.
In comparison, the overall cryptocurrency market capitalization fell, recording a daily loss of 2.8%, or $2.91, at the time of the announcement. During the same period, Bitcoin (BTC) fell 4%, and Ethereum (ETH) fell 6%.
XRP/USD daily chart. source: TradingView
What are the factors behind XRP’s recent bullish momentum?
Changes in US regulatory environment support XRP price rise
XRP was trading at $0.7955 on November 15, extending its weekly gain to 50%, and last reached the level on June 19, 2023. The rally came as 18 U.S. states filed lawsuits against the Securities and Exchange Commission (SEC) and its members, including Chairman Gary. Gensler alleges “unconstitutional overreach” by the cryptocurrency industry.
Plaintiffs include Nebraska, Tennessee, Wyoming, Kentucky, West Virginia, Iowa, Texas, Mississippi, Ohio and Montana.
According to The Kobeissi Letter, this follows a statement from Gensler in which he “suggested he may leave” the agency.
source: Kobeish Letter
The lawsuit also claims the SEC violated each state’s right to regulate its economy.
The lawsuit stems from speculative optimism in the cryptocurrency community that a cryptocurrency-friendly business environment under incoming U.S. President Donald Trump could benefit tokens linked to U.S.-based companies such as Ripple Labs, the company behind XRP, and Uniswap (UNI). It came out amidst the increase. , increases its value in the long run.
XRP price recovery supported by increased open interest
The surge in XRP price on November 15 was due to a surge in open interest (OI).
Open interest is a key indicator used by traders and analysts to assess market sentiment and predict future price movements.
According to CoinGlass data, XRP’s OI rose to $1.3 on November 15, about 20% higher than the $1.1 billion recorded a day earlier.
Open interest for XRP on all exchanges. Source: Coinglass
High open interest simply indicates that the current market trend driving the underlying price is strong and indicates investor confidence that the trend will continue.
relevant: 11/13 Price Analysis: BTC, ETH, SOL, BNB, DOGE, XRP, ADA, SHIB, TON, AVAX
XRP price is about to end its multi-year downward trend.
Several cryptocurrency traders said they expect XRP to begin a sustained recovery based on its current momentum, setting double-digit price targets for the token.
Independent analyst Egrag Crypto believes that a cryptocurrency-friendly and clear regulatory environment could push the price of XRP to around $11. This is a 40-fold increase from the lowest cycle price of $0.28.
“#XRP posted an impressive 20x surge last cycle despite #SEC lawsuit,” the analyst added in his analysis of X.
“Now that we have excellent regulatory clarity, could we see a 40-fold or even 50-fold boom?”
Cryptocurrency technical analyst Mikybull Crypto shared a chart showing that the XRP price has crossed a three-year descending trendline, with $0.85 and $1.10 being the key resistance levels to watch.
“A massive rally is coming.”
The multi-year downtrend line at $0.6163, encompassed by the 200-week simple moving average (SMA), is acting as immediate support for the XRP price.
The Moving Average Convergence Divergence (MACD) indicator has just generated a bullish signal. This occurred during the week ending November 8 when the MACD line (blue) crossed the signal line (orange), indicating a reversal in market conditions to the upside.
XRP/USD weekly chart. source: TradingView
It is worth noting that XRP’s recent rally has turned key levels into support levels, including the 100-week SMA and 50-week SMA at $0.5278 and $0.5573, respectively. Increased buying in these buyer congestion zones is likely to push the price of XRP higher, with $1 representing a near-term target for the bulls.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.