The price of Ripple has formed two distinct chart patterns, indicating the potential for short-term selling pressure in July.
Ripple (XRP) was trading at $2.30 on Tuesday, June 8, up more than 20% from its June lows.
Ripple (XRP) has several fundamental factors that could drive its price up in July. Firstly, its ecosystem is performing well, with coins like Corium and Sologenic achieving double-digit gains this week. Additionally, the total value locked on the XRP Ledger has risen to $62 million, while the recently launched value has reached $52,000.
Secondly, there are indications that Bitcoin (BTC) may finally exceed its all-time high this month.
The prospects for Bitcoin's rise in the multi-market have continued, as the currency formed 'cup and handle' and 'bullish flag' patterns. A rise in Bitcoin's price is likely to yield gains in the cryptocurrency market, including XRP.
Thirdly, Ripple USD is on track to achieve a market value of $500 million this month. It has already surpassed the $485 million mark, and the passage and signing of the GENIUS Act may accelerate its growth, given Tether (USDT)'s non-compliance with standards. Therefore, USDT holders in the United States are likely to move to other compliant tokens, such as USDC, PYUSD, and RLUSD.
The likelihood of the U.S. Securities and Exchange Commission (SEC) approving several ETF funds for XRP later this year remains high at 85%. These funds may achieve great success, as evidenced by the recent launches of Bitcoin and Ethereum ETFs.
Additionally, the price may recover
before Brad Garlinghouse's scheduled testimony before Congress on July 9.
Technical analysis of XRP price
Technical indicators suggest that short-selling pressure on XRP may be imminent for two reasons. The token has formed an inverted head and shoulders pattern, which is a widely followed bullish reversal signal.
XRP has also developed a symmetrical triangle, where its trend lines converge near the breakout point. This triangle is part of a bullish flag pattern that has lasted for eight months, which started after a short-selling pressure in November of last year.
A breakout from this structure could push XRP towards its highest level last year at $3.39, a 48% increase from current levels. A drop below the support level at $1.9130 would invalidate the bullish setup.