Rising Interest in XRP Suggests Potential Price Breakout Amidst SEC-Ripple Battle
Summary:
The rising open interest (OI) in XRP, as shown in a market analysis by CryptoQuant author Woominkyu, suggests traders are predicting an upswing in XRP's price. However, this could lead to sudden market fluctuations, requiring caution. While XRP's price has been dropping since the beginning of the year, a potential settlement in Ripple's ongoing legal battle with the SEC could provide relief for investors. Moreover, based on key technical chart patterns, notably a descending triangle and fractal patterns, XRP could be on the verge of a price breakout by June end.
The XRP token is garnering increased attention from investors, suggesting an anticipated upswing in its price. The escalating speculation hints that XRP could witness some positive momentum in the future. In recent times, a surge in open interest (OI) has revealed that an increasing number of traders are wagering on a rise in the price of XRP, as noted by Woominkyu, a verified CryptoQuant author in his market analysis.
On June 18, Woominkyu posited in his research paper that the pattern of simultaneous rise in open interest and price reflects the opening of more positions by investors expecting an increase in XRP's value. This surge indicates a heightened activity around XRP trading.
Woominkyu, however, tempered this observation with a warning: an uptick in open interest and price could lead to sudden market oscillations, necessitating caution.
As provided by Binance data, XRP's value has been on a decline since the start of the year, dipping by more than 19% year-to-date (YTD), and currently stands at $0.49.
Open interest in XRP began its upward trend on June 11, possibly linked to updates in Ripple's ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). On June 13, Ripple proposed a penalty sum no larger than $10 million, significantly lower than the SEC's initial suggestion of an $876.3 million civil punishment. Ripple justified their counterproposal by referring to the SEC's resolution with Terraform labs. The SEC, however, challenged this proposed figure in their letter to Judge Torres on June 14.
A potential settlement in this matter can alleviate the concerns of investors, as Ripple and the SEC have been engaged in legal tussle since 2020 over allegations of selling unregistered securities.
Upon analyzing a key technical chart enlargement, it appears that XRP could be gearing up for a price breakout by the end of June. XRP's daily chart exhibits a descending triangle, a graph display that could predict an impending price explosion as the triangle's edges shrink. If XRP can hold onto a support figure of $0.47, there can be a potential buoyancy in its price.
Fractal patterns are another potential indicator of a forthcoming breakout, if the price chart continues to replicate patterns noticed after February 2024, marking a breakout from a similar ascending triangle pattern.
Investors, however, must consider the impact of any unfavorable news concerning the SEC vs Ripple lawsuit that might unsettle the market, potentially driving the XRP cost below its current support position.
Published At
6/19/2024 6:39:12 PM
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