• XRP price breaks several significant resistance levels during last week’s 65% spike, transforming them into pivotal support.
  • Daily Active Addresses (DAA) metric continues higher after signaling a bullish Golden Cross pattern at the end of July.
  • XRP is not a traditional security under the Digital Asset Market Structure and Investor Protection Act.

XRP price closed last week with the largest weekly return since the beginning of April, unlocking it from the resistance associated with the strategically important 200-day simple moving average (SMA) and propelling Ripple not only through the psychologically important $1.00 but also through the 38.2% and 50% Fibonacci retracement levels. The buying stampede has created credible layers of support that should withstand any profit-taking resulting from the burst higher. Furthermore, it has placed XRP price in a constructive position to climb higher moving forward.

XRP price reasserts relative strength in the cryptocurrency complex

From March 8 until April 26, XRP price was a relative leader in the cryptocurrency complex, raising the Ripple market dominance by 187% from 1.14% to 3.28%. Last week’s rush higher reasserted XRP price leadership and put its market dominance back above the 50-week SMA.

XRP percentage of the cryptocurrency market

XRP percentage of the cryptocurrency market

More importantly, the race higher reclaimed the critically important $1.00, a level that had been support in the early stages of the significant correction and then resistance at the end of May after the collapse during the month. Ripple also quickly overcame the 38.2% retracement at $1.06, which aligns with several highs in late May and early June.

With $1.00 and $1.06 now combining as support, XRP price is well-positioned to deflect a wave of selling pressure inspired by profit-taking or a reversal in the broader cryptocurrency market. Moreover, Ripple is now unchallenged until the 78.6% retracement at $1.65, which corresponds with a series of highs printed in the first half of May and represents a 40% return from the current price of $1.17.

XRP/USD daily chart

XRP/USD daily chart

In one week, XRP price transformed the charts on several timeframes, recovered several layers of compelling support and reclaimed the 50-week SMA for the market dominance reading, establishing Ripple as a new relative strength leader with the momentum to reach higher prices in the days and weeks ahead.

Unique addresses pick up interaction with XRP, confirming price gains

In July, the number of unique addresses in daily XRP transactions declined to late November 2020 levels using the 7-day and 30-day moving averages (MA). It signified that there was marginal crowd interaction (or speculation) with the digital token.

The Ripple outlook began to change towards the end of July when the 7-day MA crossed above the 30-day MA, triggering an on-chain metric Golden Cross pattern and raising the probability that the new rally off the July low was more than just an oversold bounce like at the end of June or the end of May. 

The Daily Active Addresses (DAA) spiked higher last week, showing a new commitment and emotion for Ripple and, as a result, strengthening the credibility of the new rally to transform into a sustainable advance that will not only test the April high of 1.96 but also put XRP price within striking distance of the all-time high of $3.30.

XRP daily active addresses (DAA) - Santiment

XRP daily active addresses (DAA) - Santiment

Lack of clarity over asset definition may be the key

In the legal stand-off between Ripple and the Securities and Exchange Commission (SEC), Ripple has contended that there was no proper guidance or definition for cryptocurrencies at the time. Therefore it is not subject to the same securities law as a stock, for example.

The SEC is focused on the marketing of XRP. More specifically, the fact that Ripple marketed XRP as a security. Thus the company and the individual defendants directed an unregistered securities offering when it offered $1.3 billion in XRP, starting in 2013.

The Digital Asset Market Structure and Investor Protection Act notes that the “current digital asset market structure and regulatory framework is ambiguous and dangerous for investors and consumers.” It substantiates Ripple’s claims that due to the lack of clarity within the digital asset space, it never received a timely notice that XRP could be classified as a security.

As the current legislation is written in the Digital Asset Market Structure and Investor Protection Act, XRP will not fall under the definition of a Digital Asset Security. Instead, the digital token would be defined as just a Digital Asset, therefore free from the supervision of the SEC. XRP would be subject to regulation by the Commodity Trading Commission.

In terms of applying the new legislation, many legal commentators contend that the new legislation will be applied retroactively, putting Ripple in a more comfortable position to get the SEC case thrown out.

XRP price has overcome several technical challenges on the charts and renewed interest in the token that is fundamental to transforming a rally into a sustainable advance. Moreover, with the new legislation tilted towards the Ripple argument, XRP price has the potential to extend the 40% move to the April high into a new all-time high in an impulsive form, generating a 180% gain from the current price.

Here, FXStreet's analysts evaluate where Ripple could be heading next as it seems primed for a pullback before higher highs.

 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

XRP rally likely as Ripple Swell conference is held this week

XRP rally likely as Ripple Swell conference is held this week

Ripple trades above $0.5400 early on Monday. The altcoin added over 2% to its value on the day, ahead of a key event. Ripple, a cross-border payment remittance firm, is gearing up for its annual conference called Ripple Swell. 

More Ripple News
Bitcoin Price Forecast: BTC eyes return to all-time highs

Bitcoin Price Forecast: BTC eyes return to all-time highs

Bitcoin trades close to $66,000 on Monday. The largest asset by market capitalization has noted a steady increase in its demand among traders since April 2024, according to data from crypto intelligence tracker CryptoQuant. 

More Bitcoin News
Crypto Today: Bitcoin, Ethereum rally, XRP recovers even as institutional demand for BTC, ETH ETFs slows

Crypto Today: Bitcoin, Ethereum rally, XRP recovers even as institutional demand for BTC, ETH ETFs slows

Bitcoin rises towards $65,000 on Monday, gaining nearly 4% on the day. Ethereum adds over 3% to trade above $2,500. XRP edges up above $0.53 but trades within its recent range.

More Cryptocurrencies News
Solana Price Forecast: SOL gears up for double-digit gains as demand for meme coins jumps

Solana Price Forecast: SOL gears up for double-digit gains as demand for meme coins jumps

Solana continues its upward trend this week, rising above the $150 level on Monday. The token of the Ethereum-alternative smart contract chain has gained 3% on the day and is gathering positive momentum at the time of writing. 

More Solana News
Bitcoin Weekly Forecast: Will BTC decline further?

Bitcoin Weekly Forecast: Will BTC decline further?

Bitcoin’s (BTC) price fell over 6% at some point this week until Thursday, extending losses for a second consecutive week, as it faced rejection from a key resistance barrier.

Read full analysis
Five best Forex brokers in 2024

Five best Forex brokers in 2024

VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals. 

Read More

BTC

ETH

XRP