Why is the XRP price up today?
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NOIDA (CoinChapter.com)— In a significant development for the XRP community, CME Group has announced the launch of real-time indices and reference rates for XRP, in collaboration with CF Benchmarks.
Starting July 29, these benchmarks will offer transparent pricing for XRP, meeting the demand for reliable price feeds among institutional investors. Ripple CEO Brad Garlinghouse hailed this as a critical step towards institutional crypto products, emphasizing the importance of a trusted benchmark reference rate to boost institutional confidence in XRP.
This price surge comes as the prolonged lawsuit between Ripple and the US Securities and Exchange Commission (SEC) appears to be nearing its conclusion. With expectations high, American attorney Fred Rispoli predicts a resolution could occur this month, potentially with a penalty for Ripple of no more than $25 million.
The legal battle, in which the SEC initially sought a $2 billion penalty, has seen various proposed settlements, with the SEC recently suggesting a $102.6 million fine. Ripple, however, continues to argue for a much lower penalty. The outcome of this lawsuit remains a pivotal factor for XRP traders and the broader crypto community.
Whale Accumulations And Fund Inflows Why XRP Price Is Up
Recent data from Santiment shows significant accumulation by large wallet investors. Between July 12 and 15, wallets holding between 10 million and 100 million XRP added 300 million tokens to their holdings. Another cohort, holding between 100,000 and 1 million XRP, accumulated 10 million tokens during the same period.
This large-scale buying activity suggests strong confidence among significant investors in XRP’s future performance.
The broader cryptocurrency market has experienced a positive sentiment shift, contributing to XRP’s price rise. As investors regain confidence in digital assets, altcoins like XRP often benefit from increased trading volumes and positive price movements. The overall market trend plays a crucial role in supporting XRP’s upward trajectory.
Favorable regulatory news or developments often impact XRP’s price. While specific new regulations haven’t been issued recently, the ongoing positive momentum in the regulatory landscape for Ripple Labs and XRP can contribute to investor confidence.
Technical Setup Adds To The Bullish Cues For XRP
Furthermore, XRP price has formed a bullish technical setup called the ‘falling wedge.’
A falling wedge pattern features a pair of converging trend lines connecting lower highs and lower lows, forming a narrowing shape that slopes downward.
The pattern indicates that an asset’s price, while consolidating in a downtrend, is losing bearish momentum and preparing for a potential reversal to the upside. Typically, a breakout occurs upward, in line with the overall trend.
To estimate the price target, traders measure the widest part of the wedge at the beginning and project this distance upward from the breakout point. A higher trading volume during the breakout confirms the reversal’s reliability, indicating stronger market conviction and a higher likelihood of success.
According to the rules of technical analysis, XRP price might rally nearly 82% from its current level to reach the pattern’s projected target near $1.
The post Why is the XRP price up today? appeared first on CoinChapter.
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