According to Cointelegraph, XRP has emerged as one of the top-performing crypto assets, experiencing a 7% increase over the past 24 hours. After dipping to $0.50 on September 6, it is now approaching a retest at $0.60, although a descending trendline may present resistance in the coming days.
XRP has regained a bullish position above the 200-day EMA, enhancing its chances of breaking away from the current higher low pattern. This recovery was further bolstered by Grayscale Investments' announcement of a new single-asset crypto fund dedicated to XRP, which has raised the prospects of a spot XRP ETF in the future. The Grayscale XRP trust is currently available to institutional and accredited investors, potentially attracting significant smart money investments.
Ripple CEO Brad Garlinghouse expressed his optimism about the development, noting that with regulatory clarity in the US and other countries, the space is poised for growth. Following the announcement, XRP experienced a parabolic rally on the one-hour chart, with its price surging by 7.41% before retracing 50% from a high of $0.588.
In addition to the price action, XRP's open interest (OI) saw the largest percentage increase among the top 10 crypto assets, rising by 6.57%. Trading volumes also jumped significantly by 319% over the past day, totaling $2.94 billion. These metrics indicate that both retail and futures activity contributed to XRP's momentary breakout.
Historically, XRP has rallied on the back of positive news. In 2023, XRP saw a 47% rally in July after it was declared not a security. Similarly, in July 2024, XRP's price rose 30% amid speculations of a settlement in the ongoing SEC-Ripple lawsuit. Last month, Ripple was ordered to pay a $125 million civil penalty, which many community members viewed as a bullish sign as the federal case neared its final stages.
Independent trader 360Trader believes the XRP weekly chart looks "macro bullish," highlighting a double bottom inside an ascending triangle pattern. This could allow XRP to challenge pattern highs and reclaim $0.70. Technically, overhead resistance at $0.60 should not be an issue for XRP/USD, with a main bullish signal triggered once the asset can reclaim and post a daily close above $0.6586. A recovery above $0.65 would turn $0.60 into long-term support and form the first higher-high pattern in 2024. However, unless XRP breaks above $0.6586, the long-term trend remains sideways and reliant on external positive catalysts for rallies.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
