- XRP is observed to be building momentum for its biggest surge ever after making an initial run of 20% following the SEC vs Ripple ruling.
- Another analyst has predicted that the asset could hit $1 in a few months once it breaks above the $0.86 resistance level.
The multi-year legal battle between the US Securities and Exchange Commission (SEC) and Ripple Labs was recently wrapped up with a civil penalty of $125 million imposed on the blockchain company. As we reported earlier, the SEC proposed a penalty of $2 billion, with Ripple countering this with a $10 million proposal.
Regardless, Ripple Labs CEO Brad Garlinghouse still deemed the $125 million penalty appropriate, celebrating this ruling and labeling it a victory for the industry and the rule of law.
Following the much-anticipated announcement, the XRP price took off to $0.63 to recover a significant share of its previous losses, rising by 20% in just 24 hours. This price surge surprised futures traders, with 40% more short positions liquidated than long positions within four hours.
Our analysis of Coinglass data shows that $5.4 million in short positions were liquidated within the period. Unfortunately, an additional $20 million in short positions could face liquidation once the XRP price reaches the $0.65 mark.
At press time, XRP steadily climbed up the price curve after plunging below $0.60 shortly after the unexpected run. The asset is trading at $0.56, surging by 1.24% in the last 24 hours and 10% in the last seven days.
According to our investigation, $25 million worth of long positions could be affected if the price takes another nosedive to reach $0.55.
Is XRP Ready for its Biggest Run Ever?
A renowned crypto trader identified as “Steph is Crypto” is subjecting the digital asset to a critical price analysis. According to him, XRP is on the verge of embarking on its biggest price increase ever. To back his statement, the analyst shared a monthly chart depicting a bullish emergence of a triangle pattern. Most importantly, that chart features a 51% surge in the XRP trading volume in the last 24 hours, with $1.5 billion changing hands.
$XRP is gearing up for the biggest breakout in it’s entire price history on the monthly 👀 pic.twitter.com/ix9OUSmeTx— STEPH IS CRYPTO (@Steph_iscrypto) August 9, 2024
Similarly to this observation, the XRP’s weekly chart uncovered about three weeks ago showed a rare symmetrical triangle pattern forming since 2018. Fascinatingly, this was marked by converging trendlines compressing price action.
Analysts believe the asset keenly attempts to break out of the upper trendline resistance. A successful move could see XRP reach $1 and subsequently attempt to set a new all-time high price record. For this to materialize, it would first have to cross the $0.86 mark, which acted as a significant resistance level between January to March 2022 and July 2023.
This bullish formation appears to have been seen by traders as over $2 million has been put on XRP’s $1.10 call option. According to Santiment data, XRP whales have been aggressively accumulating the asset in the past few weeks, with those holding over one billion native tokens increasing their positions to 41.44% from 40.27% this year.
Key metrics like the Relative Strength Index (RSI) also indicate a rebound from the 50 level, suggesting a bullish momentum.
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