The price of XRP (XRP) has been shot following a federal court ruling saying that their sales on crypto exchanges complied with US securities laws.
On July 14, the XRP price fell back about 10% to $0.76, but compared to its lowest price the day before, it was still up about 65%.
Related: Why has the price of XRP gone up today?
At its highest level in the last 24 hours, the XRP/USD pair reached $0.93, its best level since December 2021, just shy of the $1 mark.
A whale-backed XRP rally
Certain indicators show that the ongoing XRP price rally may not just be a short-term reaction to the positive news for Ripple.
For example, the duration of XRP's massive pump coincides with its trading volumes peaking at 10 months. Meanwhile, the number of XRP whale transactions, or wallets holding more than $100,000, rose to its best level in 2023, suggesting that wealthier investors are backing XRP's rally.
"If the key whale and shark directions are increasing their supply on this pump, then it's a foreboding sign that the pump may be starting, and it's a sign of good things to come." noted Brian Q, analyst at the Santiment data analytics platform.
Additionally, XRP price gains are in line with an increase in the supply of entities with a token balance of 100,000-10 million.
In other words, the whales have not sold the rally but actually Accumulated XRPwhich suggests that most want to position themselves for more profit.
XRP to $1 and beyond?
From a technical point of view, XRP may test the key $1 level in the coming days, but its potential to continue its rally beyond that seems weak at the moment.
In particular, the July 14 pullback occurred near a confluence of resistance consisting of a multi-year horizontal trend line (purple) and a giant falling trend line top (black).
Additionally, XRP's weekly RSI has become overbought, raising its prospects for a correction.
If a pullback occurs, XRP price risks falling towards its multi-year uptrend line support near $0.45 in September, around 55% below the current price level.
Related: Ripple CTO Warns Against XRP Scams Amid SEC-Induced Hype
Other price targets include the token's 50-week exponential moving average (50-week EMA; the red wave) near $0.48 and the 200-week EMA (the blue wave) near $0.50.
On the other hand, an overbought RSI could also result in XRP price consolidating sideways within the $0.75-1 range.
If XRP price decisively breaks above $1, then its next September price target will likely be near $1.35, a resistance level from the August-December 2021 session.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
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