- XRP, the digital currency used by Ripple’s payment network, has soared to a three-month high of $0.61 following rumors of a potential settlement with the SEC.
- Market speculation is rife about a crucial meeting scheduled for 18th July that could potentially resolve the long-standing legal battle.
- Despite some skepticism from experts, the XRP market has shown significant positive momentum, posting a notable 7% daily gain.
Ripple’s XRP surges on speculation of SEC settlement, hitting a three-month peak at $0.61.
Rumors of SEC and Ripple Settlement Boost XRP
Ripple’s native token XRP surged to a three-month peak of $0.61, fueled by rampant speculation of a settlement between Ripple and the U.S. Securities and Exchange Commission (SEC). Market participants eagerly anticipate a key meeting on July 18th, which some believe might finally bring an end to the extended legal battle between Ripple and the SEC.
Market Sentiment and Expert Opinions
While some in the crypto community are optimistic about a positive outcome from the SEC-Ripple meeting, others, including former SEC lawyer Marc Fagel, remain skeptical. Fagel pointed out that numerous meetings between Ripple and the SEC have taken place previously without any conclusive results. “I mean, they’ve had about 150 of these nearly-weekly meetings since the case was filed, and Crypto Twitter was convinced a settlement was being discussed at every one of those meetings, but this is DEFINITELY the one!.. It’s not the one,” he remarked.
XRP’s Price Action and Market Dynamics
The price rally saw XRP rising by 7% daily, effectively overturning the losses sustained during Q2. On a broader monthly basis, XRP has ascended by 30% in July, outperforming major cryptocurrencies like Bitcoin, which only saw a 3% rise during the same period. Such a robust performance escalated speculation that insiders might have had access to positive settlement news in advance.
Technical Analysis and Market Indicators
The XRP price surge notably breached the 38.6% Fibonacci retracement level ($0.61) and appears poised to target the next bullish threshold at the 23.6% Fibonacci level ($0.66). Nonetheless, the token encountered resistance within a bearish order block near the 38.6% Fib level, coinciding with the RSI (Relative Strength Index) entering overheated territory. This suggests that while buying activity is vigorous, buyer exhaustion may soon set in, possibly leading to a price retracement to the 50% Fib level, offering a re-entry point for side-lined speculators.
Declining Selling Pressure and Trader Sentiment
Data from CryptoQuant illustrates a notable reduction in selling pressure in XRP’s spot market, especially on platforms such as Binance. Exchange inflow decreased dramatically from $739 million on July 10th to $1.9 million at the time of writing. Concurrently, futures traders have been bullish on XRP, with long positions increasing from 47% to 49% since the beginning of the week. The outcome of the July 18th meeting will be crucial in determining whether this bullish trend can sustain itself.
Conclusion
In conclusion, XRP’s recent performance and market dynamics paint an optimistic yet cautious picture. While the upcoming SEC-Ripple meeting has injected fresh enthusiasm into the market, skepticism remains regarding a definitive settlement outcome. Investors are advised to keep a close eye on technical indicators and market sentiment to make informed trading decisions in this volatile landscape.
