XRP rallied almost 100% final week, and is up 8% at this time following final week’s ruling, revealing that the asset will not be a safety.
The most recent surge to the upside has pushed momentum via a six-year resistance line, based on the quarterly Relative Energy Index. Will such a excessive timeframe breakout result in additional upside? Or will this rally not produce new highs, very like in 2020?
The cryptocurrency market is beginning to flip round, sharply
Sentiment throughout the cryptocurrency market stays usually bearish, however a glimmer of hope got here final week when a US choose dominated that retail gross sales of XRP weren’t gross sales of unregistered securities, because the US SEC had claimed.
The information instantly eliminated the negativity hanging over XRP and a number of other different cash caught within the SEC’s enforcement crosshairs. These altcoins embody Solana, Polygon and others, every of which has added greater than 20-30% in value because the landmark authorized choice.
However few cryptoassets rallied as arduous as Ripple’s coin, which noticed an virtually instant doubling in value. After some revenue capping, the value was set at round 75 cents per XRP. At present it’s already buying and selling for nearly 9 cents extra, presently round 84 cents on the greenback.
The six-year 3M RSI downtrend is damaged | XRPUSD on TradingView.com
XRP quarterly RSI momentum broke out from the downtrend line
The large transfer in XRP precipitated a significant burst in long-term momentum, based on the quarterly relative power index. With a six-year downtrend resistance trendline on the RSI out of the way in which, the sky could also be clear for the cryptocurrency.
Excessive timeframes equivalent to 3-month candles present extra dominant indicators, suggesting important power and shopping for stress. These dominant indicators overpower, for instance, each day or weekly indicators.
The subsequent step essential to maintain XRP rising uninterrupted is to take out the 2020 and 2021 highs on the 3M RSI. The next excessive on the RSI is a big purchase sign, particularly when this happens after reaching oversold situations.
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My customized Raging Bull indicator has lit up quarterly #XRP chart for the primary time in over 2000 days (~6 years)
It’s based mostly on the Relative Energy Index, which breaks out of 3M RSI downtrend resistance pic.twitter.com/g7T9fcjPV7
— Tony “The Bull” (@tonythebullBTC) 19 July 2023
