XRP has recently displayed a significant price increase in a setting where the predominant force driving price momentum is negative. The likelihood that the SEC v. Ripple lawsuit will reach a conclusion and be closed in the coming days may be one obvious explanation. Major technical indicators are in a bullish pattern, which suggests that this theory has some merit.
Over the past week, there has been a noticeable buying pattern with XRP, as the price has increased by as much as 63%. It is widely believed that the SEC case increased trader optimism and caused strong XRP whale activity. The whales also seem to have turned their attention away from Ethereum, which recently underwent a significant upgrade known as The Merge. On the other hand, since the Merge's conclusion last week, the price of Ethereum (ETH) has been declining.
Price Rally for XRP: Technical Development
According to technical analysis, XRP is currently breaking the volume trend of 18 months. On the RSI, the cryptocurrency is also bucking a 22-month trend. These observations, according to analysis by an influencer, point to a significant XRP purchasing opportunity. It's unclear if the altcoin can maintain its momentum after a 63% increase over last week's prices.
Large Increase From Last Week
The trade volume of XRP increased by as much as $7 billion during the past week, increasing the $20 billion threshold from the previous week. According to price monitoring site CoinGabbar, the altcoin is currently trading at $0.5369, up 25.3% in the previous day. Long-term patterns seem to have broken, which suggests that a Ripple (XRP) rally may be on the horizon.
Experts believe that the market is placing bets on Ripple's victory in the SEC case in the meanwhile. According to David Gokhshtein, host of a podcast about cryptocurrencies, the increase in trade suggests that people believe the lawsuit is set to go in Ripple's favour. According to Crypto Vinco, a self-described "crypto whale" on Twitter, Ripple (XRP) is taking market share away from Bitcoin and Ethereum. Apparently doing something really unusual, $XRP is consuming demand from other cryptocurrencies, including market leaders like $ETH and $BTC. If this rally continues to gain steam, a previously unheard-of upward surge might occur.