Traders are showing increasing confidence in the potential for XRP to experience a price increase. Could XRP be gearing up for a significant upward movement?
A surge in open interest (OI) indicates that more traders are anticipating a rise in XRP’s price, as highlighted in a market analysis conducted by verified CryptoQuant author Woominkyu. In a research report dated June 18, Woominkyu pointed out that while this trend could lead to a boost in price, it could also result in heightened volatility.
XRP has been on a downward trajectory since the start of the year, with a decrease of more than 19% year-to-date (YTD) and currently trading at $0.49, according to data from Binance. The increase in XRP’s open interest from June 11 onwards may be linked to developments in Ripple’s legal battle against the Securities and Exchange Commission (SEC).
Ripple recently proposed a penalty of no more than $10 million in contrast to the SEC’s suggested $876.3 million civil penalty, citing a settlement reached by the SEC with Terraform Labs. The SEC responded by arguing that such a low penalty would not serve the intended purposes of civil penalty statutes.
A potential settlement in the ongoing legal dispute between Ripple and the SEC could bring some relief to investors who have been following the case since 2020 when the SEC accused Ripple of selling unregistered securities.
Looking at technical analysis, XRP appears to be forming a descending triangle pattern on the daily chart, suggesting a possible breakout in price if it manages to hold above the $0.47 support level. Additionally, fractal patterns indicate the potential for a breakout similar to the one observed after XRP broke out of an ascending triangle pattern in February 2024.
Traders should remain cautious of any negative news related to the SEC vs Ripple lawsuit that could impact the market and potentially push XRP’s price below its current support level. As always, it is important for readers to conduct their own research and analysis before making any investment decisions, as all investment and trading activities involve risks.