- XRP was on the verge of changing its daily market structure to bullish at the time of writing
- News of a ruling expected this month has likely fueled price increases
XRP has surged an astonishing 21.1% over the past five days, as measured from the daily session open on July 8. The fact that this happened after XRP dropped below an 11-month range low indicates that the move was an anomaly.
The rebound into the former range meant that highs are now within reach. This change in sentiment could be due to expectations of a July ruling in the US Securities and Exchanges Commission (SEC) lawsuit against Ripple.
Revival above $0.45 surprises traders
Source: XRP/USDT on TradingView
The drop to the $0.41 support, a level previously tested in May 2023, signaled a breakout of the long-term range and XRP was preparing for another northward move. However, reality turned out to be different from expectations.
The reversal above the $0.47 resistance meant that the bulls were eager for a rally. A move to the other end of the range usually accompanies this deviation below a long-term range and price appreciation.
The OBV broke its trendline resistance and the RSI also jumped past neutral 50. Together they showed strong buying pressure and bullish momentum. The mid-range level at $0.585 is likely to act as resistance in the coming days but if overcome, buyers can re-enter long positions.
Probability of XRP rally stopping before $0.55
Source: Hyblock
The deviation below the low of the range usually removes a large cluster of liquidity. This was already achieved during the price drop in April. The recent drop to $0.382 caused a flood of long liquidations. It showed that holders were panicked enough to start selling once the $0.46 support broke down.
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After accumulating this liquidity, the bulls seemed prepared to send prices in the other direction. The liquidity pool at $0.538 is a magnetic zone for XRP prices. The $0.7 and $0.77 levels are also targets, but the mid-range resistance should turn into support.
However, the likelihood of this scenario may be limited by the formation of a two-month range below $0.53.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.