The cryptocurrency market has been experiencing a notable recovery this week, with XRP (XRP) taking the lead in the latest rally. Ripple, the company behind XRP, is reportedly close to reaching an agreement with US regulators, contributing to the asset’s significant price increase.
XRP’s Impressive Performance
Over the past week, XRP has surged by over 40%, reaching a value of approximately $0.60. This rise outpaces Bitcoin (BTC), which saw a 12% increase during the same period. The anticipation of a more favorable stance towards the cryptocurrency sector under a potential Trump administration has also fueled optimism across the market.
Ripple’s Legal Battle with the SEC
Ripple’s ongoing legal battle with the US Securities and Exchange Commission (SEC) has been a significant point of attention. The SEC filed a lawsuit against Ripple Labs in 2020, accusing the firm of raising funds through the sale of XRP without registering it as a security. This case has been closely watched due to its potential implications for the SEC’s regulatory scope.
Last July, a US District Judge ruled that sales of XRP to retail investors on exchanges did not constitute investment contracts, a decision seen as a setback for the SEC. The SEC’s website lists a “closed meeting” scheduled for July 18, sparking speculation about a potential resolution to the case.
Mixed Opinions on Settlement Prospects
Despite the rumors, former SEC lawyer Marc Fagel dismissed the possibility of an imminent settlement, noting that such closed-door meetings have been routine since the lawsuit was filed. Pro-XRP lawyer Fred Rispoli also expressed skepticism about a pre-judgment settlement, suggesting that while negotiations on unresolved arguments could occur, a resolution before the court’s ruling seems unlikely.
Ripple’s Political Moves
In a strategic move, Ripple Labs recently announced a $1 million donation to a new political action committee aimed at unseating anti-crypto Senator Elizabeth Warren and supporting John Deaton as the next senator from Massachusetts. This political involvement underscores Ripple’s efforts to influence the regulatory landscape.
XRP Price Analysis
XRP has made a strong comeback in recent days, putting the bulls back in control. At press time, XRP is trading at $0.616, with an intraday surge of 12.36%, reflecting neutrality on the charts. The pair of XRP/BTC is at 0.00000944 BTC, and the market cap stands at $34.39 billion. Analysts are optimistic, suggesting that XRP’s price may continue to rise and reach the $0.70 mark soon.
The price action signaled a range breakout and climbed above key moving averages. Backed by volume support and whale accumulation, XRP witnessed a sharp recovery from its lows of $0.40. The relative strength index (RSI) curve skyrocketed to 72, indicating an overbought condition. A short-term pullback is possible, but the overall trend remains bullish.
Per Fibonacci levels, XRP has crossed the 23.6% cluster and comfortably sits above the 38.2% zone, gaining bullish momentum. XRP saw sharp volume-based buying, favoring continuous upward movement. If XRP decisively breaks and closes above $0.70, further upside could be unlocked.
Market Reaction and Analyst Predictions
XRP’s price has sparked optimism among its community, with the token trading at $0.6161 at press time. Analysts are bullish, predicting that XRP could reach the $0.70 mark soon. Crypto analyst Dark Defender suggested that if XRP breaches the $0.6649 level, it could potentially embark on a significant rally, with speculative targets ranging from $18 to $36.
The price surge has also led to a significant spike in social media activity and development contributions within the XRP ecosystem. The increase in whale accumulation and strong volume support has further bolstered the bullish sentiment.
