Ripple (XRP) price rises ahead of the closed meeting with the SEC
The price of Ripple's XRP token has maintained an upward trend over the past 12 hours as anticipation grows for a closed-door meeting between the payment services provider and the Securities and Exchange Commission (SEC).
The meeting, which was rescheduled from a previous date, will focus on resolving the legal dispute between the parties.
Ripple is seeing an increase in buying activity
XRP is currently trading at $0.60. In preparation for Ripple's upcoming meeting with regulators, the price of the token has risen and is trending within an upward channel.
Altcoin price movements evaluated on the 12-hour chart reveal an increase in demand. Its Relative Strength Index (RSI) currently rests above its neutral 50 line at 59.02, indicating that buying pressure is outpacing selling activity among market participants.
An asset's RSI measures overbought and oversold market conditions. At 59.02 at press time, the RSI for XRP indicates that traders are accumulating the token in preparation for a favorable outcome from the upcoming meeting.
Besides the notable growth in its spot market, the XRP derivatives market has also seen a significant increase. Over the past 24 hours, trading volume in XRP derivatives reached $3.82 billion, representing an increase of 65%.
Moreover, the funding rate for XRP has remained positive across cryptocurrency exchanges. At the time of publishing, XRP's funding rate is 0.0072%.
When an asset's funding ratio is positive, it indicates an increase in demand for long positions. This suggests that more traders expect the asset's price to rise compared to those who buy it, hoping to sell it at a lower price
XRP Price Forecast: The price may swing in either direction
When an asset experiences an increase in its derivatives trading volume, it indicates that traders are actively speculating on its future price movements. This often leads to an increase in price volatility.
The widening gap between the upper and lower bands of the Bollinger Bands (BB) indicator for XRP confirms these fluctuations. This puts the symbol at risk of swinging in either direction.
If Ripple's meeting with the SEC ends in resolving the various allegations made by both parties, the positive sentiment could push the price of XRP to $0.61.
However, if such decisions are not reached or are not made, the price of the token may fall to $0.56.
