The price of XRP (XRP) skyrocketed in the wake of a federal court ruling that said its sales on cryptocurrency exchanges complied with US securities laws.
On July 14, the price of XRP fell by about 10% to $0.76, but it was still up about 65% compared to the previous day’s low.
Related: Why Did XRP Price Go Up Today?
At its highest levels in the past 24 hours, the XRP/USD pair reached $0.93, its best level since December 2021, and is close to reaching the $1 mark.
XRP rally backed by whales
Some indications show that the ongoing XRP price pump may not be just a short-term reaction to the positive news for Ripple.
For example, the duration of XRP’s massive pump coincided with trading volumes reaching a 10-month high. Meanwhile, the number of XRP whale transactions — or wallets containing more than $100,000 — rose to its best level in 2023, indicating that the richest investors are backing the XRP rally.
“If the major whale sharks and headliners are increasing their supply going to this pump, that is a warning sign that the pump may be just getting started, and it is a sign of good things to come,” he said. male Brian Keogh, analyst at data analytics platform Santiment.
Moreover, the XRP price gains are in line with the increased supply held by entities with token balances between 100,000 and 10 million.
In other words, the whales were not selling the rally but in fact accumulating XRP, which indicates that most of them want to position themselves for more gains.
XRP to $1 and beyond?
From a technical point of view, XRP could test the key $1 level in the coming days, but the possibility of a continued rally beyond that seems slim for now.
Notably, the pullback on July 14 occurred near a resistance confluence consisting of a multi-year horizontal trendline (purple) and a giant downtrend line ceiling (black).
Additionally, the weekly Relative Strength Index (RSI) for XRP has turned into the overbought territory, which increases the odds of a correction.
If a pullback occurs, XRP price risks a decline towards the multi-year ascending trend line support near $0.45 by September, down about 55% from the current price level.
Related: Ripple’s CTO Warns of XRP Scams Amid SEC Hype
Other price targets include the symbol’s 50-week exponential moving average (50-week exponential moving average; red wave) near $0.48 and the 200-week (blue wave) near $0.50.
On the other hand, the overbought RSI could consolidate XRP price sideways within the $0.75-1 range.
If XRP price decisively breaks above $1, the next price target by September is likely near $1.35, which is a resistance level from the August-December 2021 session.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.