XRP is up 17% in the past 24 hours, outperforming the rest of the crypto market as the surge cools.
Data from TinTucBitcoin and TradingView shows XRP has rallied from a low of $0.6833 on November 14, climbing as much as 24% to hit a sixteen-month high of $0.8479.
Meanwhile, the total cryptocurrency market capitalization fell, posting a daily loss of 2.8% to $2.91 trillion at press time. Bitcoin (BTC) fell 4% while Ether (ETH) fell 6% in the same period.
XRP/USD daily chart. Source: TradingView
What Factors Are Behind XRP's Latest Bullish Momentum?
Changing US regulatory climate supports XRP price increase
XRP traded at $0.7955 on November 15, extending its weekly gains to 50%, reaching levels last seen on June 19, 2023. The rally comes as 18 U.S. states filed a lawsuit against the Securities and Exchange Commission (SEC) and its commissioners, including chairman Gary Gensler, for “unconstitutional violations” of the cryptocurrency industry.
Plaintiffs include Nebraska, Tennessee, Wyoming, Kentucky, West Virginia, Iowa, Texas, Mississippi, Ohio, Montana and other states.
This comes after a statement from Gensler “suggesting he may leave” the agency, according to The Kobeissi Letter.
Source: The Kobeissi Letter
The lawsuit also alleges that the SEC has infringed on the rights of states to regulate their economies.
The lawsuit comes amid growing speculative optimism in the crypto community that a crypto-friendly business environment under the Trump administration could benefit tokens associated with US-based companies, such as Ripple Labs (the company behind XRP) and Uniswap (UNI), boosting their value in the long term.
Open Interest Growth Advantage Supports XRP Price Recovery
The price surge of XRP on November 15 came after a sharp increase in its open interest (OI).
Open interest is an important indicator that traders and analysts use to gauge market sentiment and predict future price moves.
XRP's open interest rose to $1.3 billion on November 15, about 20% higher than the $1.1 billion recorded the day before, according to data from CoinGlass.
XRP open interest across all exchanges. Source: CoinGlass
High open interest simply indicates that the current market trend driving the underlying price is strong, indicating investor confidence that the trend will continue.
XRP Price Looks to End Multi-Year Downtrend
Many crypto traders say they expect XRP to continue its current bullish momentum to initiate a sustainable recovery, setting double-digit price targets for the token.
Independent analyst Egrag Crypto believes that a friendly and clear regulatory environment could push XRP to a price of around $11, representing a 40x increase from the cycle low of $0.28.
“In the last cycle, despite the#SEClawsuit,#XRPpulled an impressive 20x rally,” the analyst explained in an analysis on X, adding:
“Now, with unparalleled legal clarity, could we be seeing a 40x or even 50x surge?”
Cryptocurrency technical analyst Mikybull Crypto shared a chart showing XRP price breaking through a three-year descending resistance level, with $0.85 and $1.10 as key resistance levels to watch, writing:
“Big growth is coming.”
The multi-year bearish resistance at $0.6163, surrounded by the 200-week simple moving average (SMA), is acting as immediate support for XRP price.
See also: Coinbase acquires payments platform Utopia
The Moving Average Convergence and Divergence (MACD) indicator just flashed a bullish signal. This occurred when the MACD line (blue) crossed above the signal line (orange) during the week ending November 8, suggesting that market conditions have turned bullish.
XRP/USD weekly chart. Source: TradingView
Notably, XRP’s latest surge has seen it convert key levels into support, including the 100-week and 50-week SMA at $0.5278 and $0.5573, respectively. Increased buying from these buyer congestion zones could push XRP higher, with $1 as a short-term target for bulls.
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