XRP sees +70% gains: Can the rally continue?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Ripple Labs didn’t violate federal securities laws, ruled Judge Torres.
- XRP rallied over 70% at press time.
Ripple Labs was ecstatic following a landmark ruling reiterating that the firm didn’t violate federal securities laws. The ruling by U.S. District Judge Analisa Torres set Ripple [XRP] up over 70% in the past 24 hours, dislodging Binance Coin [BNB] from the top four cryptos by market cap.
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Some analysts opine that the development could boost the chances of Coinbase and Binance winning against the US SEC as well. The improved sentiment also saw Bitcoin [BTC] reach a new high of $31.8k.
Is a $1 value likely?
$0.45 has been a critical support level in late June and July. Fibonacci retracement levels (yellow) were placed between the most recent high on 13 July ($0.9380) and the support level of $0.451.
When zoomed out on the daily chart, the explosive XRP rally graced Q1 2022 level but failed to cross the $1 value. Bulls could cool off from the rally before attempting to clear the $0.9380 high to cross $1.
So, the 50% retracement level of $0.694, which aligns with crucial support in Q1 2022, was a key level to watch for buying opportunities. The $1.05 level will be the next target should bulls manage to cross the $1 psychological level.
Conversely, a drop below $0.694 support will signal a weakening structure, especially if BTC retreats to $30k.
Meanwhile, the RSI and OBV registered sharp upticks but with slight retracements, indicating the massive pump cooled off slightly at the time of writing.
Open Interest rates increased with the price pump
Read Ripple’s [XRP] Price Prediction 2023-24
The massive pump on 13 July doubled the Open Interest (OI) rate from >$400 million to >$800 million as the CVD (Cumulative Volume Delta) also edged higher. It showed more players were out to cover long positions during the rally – a bullish cue.
At the time of writing, the OI steadied near $800 million, and a drop below it could signal waning momentum for near-term bulls.