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

Crypto markets flash a little green on September 22 as the price of Bitcoin (BTC) rose 4.7% to trade above $19,300 and Ether (ETH) surged down 6.5% to retake the $1,300 level.

RSR and Astar Network (ASTAR) also jumped 23% and 17% respectively, but the most notable move of the day was XRP.

Currently, the price of XRP is reflecting a gain of almost 25% and the asset is up 41% over the past month. According to defense attorney James K. Filan, on September 18, Ripple Labs filed a motion for summary judgment – ​​a legal proceeding that involves the court making a final determination based on the facts provided, rather than ordering a trial – and a decision on whether XRP is a security is expected by mid-December.

Excitement over the news could improve investor sentiment about XRP’s longer-term prospects.

Related: Crypto and Stocks Soften Ahead of Fed Rate Hike, But XRP, ALGO, and LDO Look ‘Interesting’

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

XRP/USDT 1-day chart. Source: Trading View

According to Marcel Pechman, market analyst at Cointelegraph:

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

Traders not yet positioned might consider waiting to see if the 200-day moving average at $0.49 reverses to support the upcoming daily closes. Typically, intraday and swing traders take profits at longer term resistance levels and they also anticipate price rejections and retests of lower support after an asset handles a breakout after a long period of consolidation , a price dip or a move that changes the structure of the market.

Crypto analytics data provider TheKingfisher made a similar point, suggesting that bulls “likely would have the option to drop XRP for a long time.”

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


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