Ripple Price Prediction: XRP renews bid for record high as SEC commits to policy
- XRP extends trend correction toward $3.00 support as attention in the broader crypto market shifts to US inflation data.
- US SEC Chair Paul Atkins hints at a dynamic shift to policy drafting following the resolution of the Ripple lawsuit.
- The minor pullback in the futures Open Interest to $7.88 billion suggests declining speculative demand.
Ripple (XRP) faces a volatility spike with the price declining slightly to $3.18 on Tuesday as participants in the broader crypto market anticipate the release of United States (US) inflation data.
The cross-border money remittance token has declined nearly 8% from the previous week’s peak of $3.38 and almost 15% from its record high of $3.66 reached on July 18.
If interest in XRP falters as evidenced by weakening derivatives market indicators, the path of least resistance could remain downward, increasing the chances of the price extending the leg below the $3.00 support.
US SEC focus shifts to policy
The United States (US) Securities & Exchange Commission’s (SEC) Chair, Paul Atkins, has hinted at the agency’s next phase, following the resolution of the lawsuit against Ripple.
Atkins insinuated that the SEC will now focus on policy drafting, agreeing with Commissioner Hester Peirce, who said in an X post that the resources that the litigation had occupied “now can concentrate on creating a clear regulatory framework for crypto.”
The SEC Commissioners voted in favour of dropping the lawsuit against Ripple, paving the way for the agreed $50 million settlement. Both parties jointly filed to drop appeals last week.
XRP reacted positively to the lawsuit resolution on Friday, increasing above support at $3.00 to $3.38. The resistance at $3.40 was tested but not broken, subsequently delaying an anticipated breakout toward its record high.
The SEC sued Ripple in 2020, alleging that the company sold unregistered securities in violation of US securities laws.
A landmark ruling in 2023 found that the programmatic sale of XRP on third-party platforms like Binance and Coinbase did not constitute unregistered securities. Still, the court found Ripple answerable for direct sales to institutions.
As the regulatory environment in the US improves, Ripple is expanding its infrastructure to support the tokenization of real-world assets, stablecoin payments via RLUSD, while building utility for XRP with its flagship products: On Demand Liquidity (ODL) and Ripple Payments.
Technical outlook: XRP holds support as open interest declines
XRP price holds above support at $3.00, reflecting low sentiment in the broader cryptocurrency market ahead of the release of US Consumer Price Index (CPI) data. Market participants anticipate a spike in volatility, with the current decline in price likely to persist if inflation data fails to come out favourably.
Still, a reversal could ensue if the inflation meets expectations or declines, affirming the expectations of the first rate cut this year in September when Federal Reserve (Fed) officials meet.
The futures Open Interest (OI) edges lower on Tuesday following a brief rebound to $8.5 billion on Friday. CoinGlass data shows the OI, which refers to the notional value of outstanding futures or options contracts, averaging $7.9 billion at the time of writing. Should the decline persist, it would indicate low interest in XRP as fewer traders leverage long positions. This could dampen recovery, favouring a bearish bias trend.
XRP Futures Open Interest data | Source: CoinGlass
XRP’s technical structure still upholds a bullish outlook based on the upward trending 50-day Exponential Moving Average (EMA) at $2.89, the 100-day EMA at $2.67 and the 200-day EMA at $2.40. If the trend correction accelerates below the support at $3.00, these levels would help to absorb the selling pressure.
XRP/USDT daily chart
Still, a rebound could ensue above support at $3.00 in upcoming sessions if sentiment improves in the broader crypto market. Key levels of interest for traders include the resistance at $3.40 and the record high of $3.66.
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
