Home CryptocurrencyAltcoin XRP price is out of range with a 25% increase, but why?

XRP price is out of range with a 25% increase, but why?

by SuperiorInvest

Crypto Markets Flash a Little Green Like Bitcoin on September 22nd (BTC) price rose 4.7% to trade above $19,300 and Ether (ETH) rose 6.5% to regain the $1,300 level.

RSR and Astar Network (ASTAR) were also up 23% and 17%, but the day’s most notable mover was XRP.

Currently, the price of XRP reflects a gain of almost 25% and assets have increased by 41% in the last month. According to defense attorney James K. Filan, on September 18 Ripple Labs filed a motion for summary judgment — a legal process in which a court makes a final decision based on the facts provided, rather than ordering a trial — and a ruling on whether XRP is a security is expected by mid-December.

Excitement from the news could boost investor sentiment about XRP’s longer-term prospects.

Related: Crypto, stocks soften ahead of Fed rate hike, but XRP, ALGO and LDO look ‘interesting’

From a technical analysis perspective, XRP price is looking to secure a second daily close above long-term downtrend resistance, and trading volumes and open interest in futures contracts have surged over the past 24 hours.

XRP/USDT 1 day chart. Source: TradingView

According to Cointelegraph market analyst Marcel Pechman:

“XRP open interest is now at $575 million, up from $310 million a week ago.”

Traders not yet positioned may consider waiting to see if the 200-day moving average at $0.49 flips to support over the next few daily closes. Intraday and swing traders typically capitalize on longer-term resistance levels and also expect price rejection and retesting of lower support after the asset manages to break out of a long consolidation period, price bottom, or market structure-changing move.

Crypto analytics provider TheKingfisher echoed a similar sentiment, suggesting that buyers “will likely have an opportunity to short XRP for a long time.”

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment and trading step involves risk, you should do your own research when making a decision.

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