XRP surged nearly 100% higher last week, gaining 8% from the day after last week’s decision, revealing that the asset is not a security.
The recent rally to the upside has pushed the momentum through a long six-year resistance line, according to the quarterly RSI. Will this significant time-breakout lead to more upside? Or will this rally fail to achieve new heights, like it did in 2020?
The cryptocurrency market has started to turn sharply
Sentiment in the cryptocurrency market remains generally bearish, but a glimmer of hope arrived last week when a US judge ruled that retail sales of XRP were not sales of unregistered securities, as the US Securities Commission had claimed.
The news immediately dispelled the negativity hanging over XRP and several other coins that were caught in the crosshairs of SEC enforcement. These altcoins include Solana, Polygon, and others, each adding more than 20-30% in price since the landmark legal decision.
But few crypto assets have risen as strongly as ripple, which has seen an immediate doubling in price. After some profit-taking, the price has stabilized at around 75 cents per XRP. Today it already trades for about nine cents more, currently about 84 cents on the dollar.
The six-year 3M RSI downtrend is broken | XRPUSD on TradingView.com
XRP Quarterly Momentum RSI has exploded from the downtrend line
The massive move in XRP has caused a significant breakout in its long-term momentum, according to the quarterly RSI. With the RSI six-year downtrend resistance trend line out of the way, the sky could be clear for the cryptocurrency.
Higher timeframes such as the 3-month candle provide more dominant signals, indicating significant strength and buying pressure. These dominant signals override any daily or weekly signals, for example.
The next step necessary to keep XRP rising relentlessly, is a breakout from the 2020 and 2021 highs on the 3M RSI. A higher rise in the RSI is an important buying signal, especially when this occurs after oversold conditions have been reached.
Get access to the Raging Bull Technical Indicator as part of a file CoinChartist Premium Subscription (VIP).
My custom raging bull indicator lit up on a quarterly basis #XRP Chart for the first time in over 2,000 days (~6 years)
It is based on the RSI, which is breaching the downtrend resistance of the 3M RSI pic.twitter.com/g7T9fcjPV7
– Tony “The Bull” (tonythebullBTC) July 19, 2023