XRP has recently drawn attention due to the ongoing legal battle between Ripple Labs and the US Securities and Exchange Commission (SEC).
As overall market conditions turned significantly bullish today, XRP broke out of the descending channel pattern, with Bitcoin surpassing $50,000. Altcoins including XRP are following the trend.
Crypto lawyer James Murphy predicts that a possible settlement in the SEC vs Ripple lawsuit could be on the horizon, especially since 2024 is an election year and the possibility of a new SEC administration. This anticipation has contributed to the price of XRP rising to $0.53, marking a weekly gain of nearly 5% for holders.
XRP has been facing a bearish trend for the past few days, starting from the $0.535 price level and dragging it down towards the $0.515 support level.
However, as overall market conditions turned significantly bullish today, XRP broke out of the descending channel pattern. The current price action suggests that XRP is looking to form support around $0.527.
In addition to XRP’s bullish movement, Ripple, the company behind the cryptocurrency, made a major transaction yesterday.
According to a tweet by WhaleAlert, $52.6 million worth of XRP tokens were transferred from an unknown wallet to Ripple. Just before this flood, Ripple made another big transfer, sending 80 million XRP, valued at just over $42 million, to an unknown wallet.
XRP Price Points to New Rally, or Another Decline?
In the past few days, XRP price recovered from the $0.4980 zone. There was a move above the $0.505 and $0.5120 resistance levels. However, the bears remained active near the $0.5380 resistance and protected more upside, unlike Bitcoin and Ethereum.
If the bulls remain in action above the $0.5850 resistance level, there could be a rally towards the $0.600 resistance. Any further gains could send the price towards the $0.620 resistance.
If XRP fails to break above the $0.5380 resistance zone, it could start another decline. Initial support on the downside is near the $0.518 zone and the trend line. The next major support is at $0.5120. If there is a break down and a close below the $0.5120 level, the price could accelerate lower. In the given case, the price could retest the $0.480 support zone.
Shiba Inu Rally Stops
Shiba Inu (SHIB) saw its bullish trend halted despite overall market conditions turning significantly bullish. Positioned between the 100 and 50 exponential moving averages (EMA) on the daily chart, SHIB’s price action suggests a possible consolidation phase before determining its next direction.
If SHIB can overcome the resistance at the 50-day EMA and sustain above this level, it could signal renewed investor confidence, which could lead to a push towards the next resistance at $0.000010.
Bitcoin Bullish Rise
Bitcoin is making headlines by surpassing the crucial psychological mark of $50,000, suggesting strong bullish sentiment in the market.
However, this gap also introduces the possibility of an upcoming correction or consolidation before further gains.
The next significant resistance level for BTC is around the $51,000 mark. A move above this threshold could solidify Bitcoin’s bullish position and invite a new wave of momentum.
On the contrary, a price correction momentum would be expected to face support around $49,500 in a shorter time frame.
The cryptocurrency market remains vibrant, with XRP legal developments and the broader market rally. Some analysts even predict further upside for XRP, which may last between one or four weeks.
By Audy Castaneda
