XRP Hype Brings Joy to Crypto Space, But Here’s What to Watch Out For
Could this be a watershed moment for crypto? | Credit: Shutterstock
- The selling of XRP by Ripple does not constitute an offer to sell investment contracts, a judge has reportedly decided
- Given that the lawsuit has been pending for more than three years, this appears to be a significant victory for the company
- The price of XRP increased by nearly 70%, going from $0.47 to $0.82 in a single day.
- The news also resulted in XRP’s largest price increase in the previous year
Minutes after news broke that Ripple had won its lawsuit against the US Securities and Exchange Commission, the price of its XRP crypto skyrocketed.
Price of XRP Skyrocketed After News Announced
The long-dormant enthusiasm surrounding the ecosystem was rekindled by a court decision in favor of Ripple Labs, finding that XRP is not a security. As the coin gained momentum, Ripple’s chief technology officer David Schwartz issued a caution to investors, anticipating a rise in frauds.
On July 13, the United States District Court for the Southern District of New York partially resolved a two-year legal dispute between Ripple and the United States Securities and Exchange Commission by removing the “security” designation from its XRP cryptocurrency.
What came next was a natural but significant increase in the crypto market price of XRP.
The value of XRP increased by over 70%, as can be seen in the chart below, rising from $0.47 to $0.82 in a single day. The incident also results in XRP’s largest price increase in the previous 12 months.
Crypto fraudsters become quite active when there is a buzz about cryptocurrencies other crypto ecosystems like nonfungible tokens (NFTs), aiming to con naive investors. Schwartz tweeted a warning about the growing XRP scams.
“A lot of scammers are taking advantage of the recent good news to try to cheat and steal. There are no airdrops, giveaways, or special offers associated with this ruling,” he said.
Due to Ripple’s enormous popularity and expanding community, con artists frequently mimic the company’s official website to advertise phony giveaways and airdrops.
In these situations, the fraudster wants to get into the potential victim’s crypto wallets so they can later siphon off stolen money or drain the victim’s tokens.
YouTube aided in the recovery of a creator’s 2.4 million-subscriber channel in April 2023 after it had been compromised to spread XRP frauds.
Following an immediate response from YouTube, the YouTuber DidYouKnowGaming regained access to its account and recovered the deleted videos. It is yet unknown what vulnerability the hackers exploited to access YouTube accounts.
A Whale-Backed Rally of XRP
Some signs suggest that the current price surge for XRP may not be a one-time response to the good news for Ripple.
For instance, XRP’s prolonged big pump occurs at the same time as its trading volume reaches a 10-month high.
While this is going on, the quantity of XRP whale transactions—wallets holding more than $100,000—rose to its highest level since 2023, indicating that the wealthiest investors are supporting the XRP crypto rally.
According to Brian Q, analyst at data analytics platform Santiment, “if key whale and shark addresses are increasing their supply going into this pump, then it is a get foreshadowing signal that the pump may just be getting started, and it’s a sign of good things to come.”
Furthermore, an increase in the supply held by organizations with a balance of 100,000–10,000,000 tokens coincides with the price increases for XRP.
To put it another way, whales have not sold the rise but rather have accumulated XRP, indicating that the majority of them intend to set themselves up for future gains.
To $1 And Beyond For XRP?
Technically, XRP can test the important $1 level in the next days, but for the time being, it doesn’t appear that it will be able to extend its climb past that point.
Notably, the pullback on July 14 happened close to a resistance confluence formed by a massive descending trendline ceiling (black) and a multi-year horizontal trendline (purple).
XRP’s weekly relative strength index (RSI) has also shifted into overbought territory, increasing the likelihood of a fall.
Should there be a downturn, the price of XRP crypto might fall as low as its multi-year ascending trendline support area near $0.45 by September, representing a loss of about 55% from the current price.
The token’s 50-week exponential moving average (50-week EMA; the red wave), which is near $0.48, and 200-week EMA (the blue wave) near $0.50, are additional price goals.
However, an overbought RSI might potentially lead to a sideways consolidation of the XRP price inside the $0.75–1 area.
The next price target for XRP by September will probably be close to $1.35, a resistance level from the August-December 2021 session, if the price significantly breaks over $1.
