XRP, the digital asset associated with Ripple, experienced a remarkable surge last week, skyrocketing by almost 100%. Today, it’s up 8%, and this impressive performance is attributed to a recent ruling that confirmed XRP is not a security. The market responded positively, and XRP’s momentum broke through a six-year resistance line, as indicated by the quarterly Relative Strength Index (RSI). Now, the question arises: will this breakout lead to further gains, or will history repeat itself as it did in 2020?
Despite overall bearish sentiment in the cryptocurrency market, a ray of hope emerged when a US judge ruled that retail sales of XRP were not considered unregistered securities, as previously claimed by the US Securities and Exchange Commission (SEC). This ruling lifted the cloud of negativity hovering over XRP and other coins targeted by the SEC, such as Solana and Polygon. As a result, these altcoins saw price increases of more than 20-30% following the landmark legal decision.
However, Ripple’s coin outperformed its peers, experiencing an immediate doubling in price. Although some profit-taking occurred, the price settled at around 75 cents per XRP. Remarkably, it has already climbed to around 84 cents on the dollar today.
This significant movement in XRP has triggered a major breakout in long-term momentum, as confirmed by the quarterly RSI. With the six-year downtrend resistance line on the RSI now overcome, the future looks bright for this cryptocurrency.
It’s important to note that high timeframes, such as the 3-month candle, provide more powerful signals, indicating substantial strength and buying pressure. These dominant signals outweigh the impact of daily or weekly fluctuations.
To sustain XRP’s upward trajectory, the next crucial step is to surpass the highs of 2020 and 2021 on the 3-month RSI. Achieving a higher high on the RSI serves as a significant buy signal, particularly when it follows oversold conditions.
In conclusion, XRP has experienced an impressive rally following the ruling that it is not a security. The breakout in long-term momentum and the bullish signals on the RSI suggest the potential for further gains. However, surpassing previous highs will be a crucial test for XRP’s ongoing success. Investors and cryptocurrency enthusiasts will be closely watching to see if XRP can maintain its upward momentum and establish itself as a dominant player in the market.
