Ripple Price Jumps 10% as South Korean Investors Pile In: What’s Next For XRP?

Key Takeaways

• XRP has broken out of a symmetrical triangle and gains 10%.
• Legal developments spark bullish sentiment in the Ripple case.
• South Korean Demand for XRP trading is likely a factor.

Ripple’s (XRP) price has been trending upwards, rising by 10% since yesterday after being locked in a symmetrical triangle for 12 days. The price movement proved contrary to our previous expectations, as fundamental analysis suggested a potential sell-off with the scheduled 1 billion tokens unlock ahead.

However, investors’ sentiment has shifted decisively in favor of Ripple, driven by promising new developments in the company’s ongoing case against the Securities and Exchange Commission (SEC).

As XRP moves more confidently, how far will its rally continue, and will the looming token unlock negatively impact the token price?

Bullish Factors 

Hopes Of Settlement Rise

In a July 30 filing,  the SEC seeks to amend its complaint against the cryptocurrency exchange Binance. The filing marks a major shift in the SEC’s stance from its June 2023 filing, in which the regulator claimed that Binance had offered and sold several Third-Party Crypto Asset Securities.

The latest amendment specifically references Third-Party Crypto Asset Securities, suggesting that the court may not need to determine whether ten tokens, including Solana (SOL)  and Polygon (MATIC), are currently unregistered securities.

Although the filing did not specify any tokens, traders interpret this as a possible indication that the legal battle between the SEC and Ripple Labs, the company associated with XRP, could be nearing a resolution.

South Korean Exchange Trading Volume Surge 

XRP trading volumes have surged on South Korean crypto exchanges this week, even surpassing Bitcoin and reaching up to 40% on UpBit and over 35% on Bithumb and Korbit. This unusual increase in trading activity, driven by local enthusiasm and media coverage, could also have contributed to the 10% rise in XRP’s price. 

While trading volumes also rose on global platforms like Binance and OKX, they did not exceed those of BTC or ETH. The surge in XRP trading coincided with announcements from CME and CF Benchmarks regarding new indices and reference rates for the token.

Increase in Wallets Holdings 10,000 XRP 

According to Santiment data , the number of wallets holding at least 10,000 XRP has increased dramatically. 

The large wallets have surged in the past five weeks, reaching 279,400. These “shark” and “whale” addresses have returned to a six-month high. Throughout 2024, there has been a clear correlation between these large wallet holdings and XRP’s market value.

XRP Price Analysis 

On July 5, Ripple‘s price fell to $0.38, its lowest point since March. It then rebounded, rising 67.50% to $0.63 by July 17 before dipping to $0.54 on July 19. By July 25, it had climbed back to $0.62 but struggled to surpass this level.

A symmetrical triangle typically indicates that a breakout could occur in either direction. However, we anticipated a downward breakout due to several factors, which would have completed the second sub-wave correction of a higher degree.

Contrary to these expectations, XRP continued to rise, reaching $0.658, slightly above the level seen on July 17. This movement is now counted as the fifth wave of a lower degree count, suggesting that the uptrend that began on July 5 is still ongoing.

However, the upside potential may be limited, as this could be the final wave of this cycle.

The next likely target for XRP could be around $0.75, corresponding to the previous macro high reached in mid-March. Once this uptrend concludes, we could see the onset of a corrective second sub-wave, which we initially expected to have completed.

If this plays out, it would confirm the start of a new bullish phase for XRP, potentially targeting liquidity above $1 by the end of this cycle.