- XRP is on the cusp of transitioning to a bullish daily market structure.
- The anticipated ruling from the U.S Securities and Exchange Commission’s (SEC) lawsuit against Ripple could be driving the recent price gains.
- XRP experienced an impressive 21.1% rally over the last five days, starting from July 8th’s session open.
Discover the latest developments in XRP’s market structure and what it means for future trends. Insightful analysis and key levels to watch.
XRP on the Verge of Bullish Market Structure Shift
XRP has been making significant strides, indicating a potential transition to a bullish daily market structure. Over the last five days, XRP has surged by 21.1%, reversing previous losses that had pushed the cryptocurrency below its 11-month range low. This resurgence suggests that the highs within this range might soon be tested again, possibly influenced by the market’s anticipation of an important ruling expected this month in the SEC’s ongoing lawsuit against Ripple.
Impacts of Recent XRP Price Movements
The rebound from the $0.41 support level, a critical threshold tested back in May 2023, marked a significant shift for XRP. Following a deviation below this long-term support, XRP’s price reversing above the $0.47 resistance level indicated strong bullish momentum. The On-Balance Volume (OBV) breaking its trendline resistance along with the Relative Strength Index (RSI) surpassing the neutral 50-point mark solidified this momentum, showcasing increased buying pressure. In the short term, the mid-range level of $0.585 may act as a resistance. Should this level be breached, it could enable buyers to re-enter long positions confidently.
Challenges and Future Outlook for XRP
Despite the recent bullish behavior, several challenges might impede XRP’s rally before reaching the $0.55 mark. Typically, falling below a range low clears out significant liquidity clusters, similar to the scenario observed in April. The sell-offs were panic-induced once the $0.46 support faltered, causing substantial long liquidations at $0.382. After this liquidity collection, bulls seemed ready to drive XRP prices upward. The liquidity pool near $0.538 is now a significant magnetic target for XRP, with subsequent targets at $0.7 and $0.77, provided the mid-range resistance transitions into support. Nevertheless, the continuing two-month range formation below $0.53 poses a potential barrier to this bullish trajectory.
Conclusion
In conclusion, XRP’s recent price movements have introduced a potential for a bullish market structure, driven by both market sentiment and external legal factors. While the cryptocurrency faces near-term resistance levels and liquidity challenges, the overall outlook remains cautiously optimistic. Traders should monitor these key levels and developments closely to better navigate the evolving market landscape.
