XRP price breaks out of range with a 25% rally, but why?

Please fol­low and like us:
Pin Share

Cryp­to mar­kets are flash­ing a bit of green on Sept. 22 as Bit­coin (BTC) price tacked on a 4.7% gain to trade above $19,300 and Ether (ETH) surged 6.5% to recap­ture the $1,300 level. 

RSR and Astar Net­work (ASTAR) also surged by 23% and 17% respec­tive­ly, but the more notable mover of the day was XRP.

Cur­rent­ly, XRP price reflects a near 25% gain and the asset is up 41% in the past month. Accord­ing to defense lawyer James K. Filan, on Sept. 18, Rip­ple Labs filed a motion for sum­ma­ry judg­ment — a legal process that involves the court mak­ing a final deci­sion based on the pro­vid­ed facts, rather than order­ing a tri­al — and a deci­sion on whether XRP is a secu­ri­ty is expect­ed by mid-December. 

Excite­ment over the news could be improv­ing investor sen­ti­ment about the longer-term prospects for XRP. 

Relat­ed: Cryp­to and stocks soft­en ahead of Fed rate hike, but XRP, ALGO and LDO look ‘inter­est­ing’

From the per­spec­tive of tech­ni­cal analy­sis, XRP price is look­ing to secure a sec­ond dai­ly close above a longterm descend­ing trend­line resis­tance and trad­ing vol­umes and open inter­est on futures con­tracts have risen sharply in the past 24-hours. 

XRP/USDT 1‑day chart. Source: TradingView

Accord­ing to Coin­tele­graph mar­ket ana­lyst Mar­cel Pechman: 

“XRP’s open inter­est is now at $575 mil­lion up from $310 mil­lion just a week ago.” 

Traders who are not yet posi­tioned might con­sid­er wait­ing to see if the 200-day mov­ing aver­age at $0.49 is flipped to sup­port over the next few dai­ly clos­es. Typ­i­cal­ly, intra­day and swing traders take prof­it at longer term resis­tance lev­els and they also antic­i­pate price rejec­tions and low­er sup­port retests after an asset man­ages a break­out from a peri­od of long con­sol­i­da­tion, price bot­tom or a mar­ket struc­ture-alter­ing move. 

Cryp­to ana­lyt­ics data provider TheK­ing­fish­er drove a sim­i­lar point by sug­gest­ing that buy­ers would “like­ly have an oppor­tu­ni­ty to long XRP lower.”

The views and opin­ions expressed here are sole­ly those of the author and do not nec­es­sar­i­ly reflect the views of Cointelegraph.com. Every invest­ment and trad­ing move involves risk, you should con­duct your own research when mak­ing a decision. 

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published.