Ripple settles with SEC for $50M, boosting XRP price by 9% Will Bullish Rally Hit $3 Mark Next?
$XRP is up about 10% today and trades at $2.30. Despite the United States Securities and Exchange Commission (SEC) and Ripple's $50 million settlement, the token has failed to rally. Why? Will XRP reach the $3 mark?
XRP price remains flat after Ripple's $50M settlement with SEC
On May 8, the price of XRP rose almost 10% along with Bitcoin (BTC), which hit the roof and reached $104k.
Interestingly, Ripple and the SEC signed a $50M settlement yesterday, but the price has failed to increase.
Why? It is interesting to see that the long-awaited SEC vs. Ripple lawsuit does not have much impact on the price of XRP. In fact, the token is down 1.08% at the time of writing today.
The main reason for this flat price action of XRP can be attributed to Bitcoin's first mover advantage.
As all eyes are on BTC and it is reclaiming the $100k level, many are keeping an eye on altcoins including XRP. Therefore, the price of XRP will likely take a breather before turning to its upside.
XRP Price Prediction: What’s Next?
On the daily chart, $XRP price generated a bullish wrap candle due to the 10% rally noted on May 8.
This marks the token's breakout from a multi-month bearish channel that saw the token drop from $3.40 to $1.60. However, the recovery since the aforementioned swing low has been spectacular.
With the daily candlestick closing above the upper trendline of the channel, the XRP price will attempt to scale higher.
Key levels to watch include the 23.60% Fibonacci level at $2.70, then $3.67 and $4.59. While the target above $4.59 is still overstated, investors should pay attention.
While the channel breakout is bullish, the supertrend indicator has yet to reverse sharply. If XRP breaks the $2.35 resistance level into a support floor, it will.
The daily chart shows that the MACD indicator has held bullish since its bullish crossover in early April.
Due to recent volatility, there have been some false positives, but this metric is optimistic and supports a potential rally for XRP.
On the other hand, a breakdown of the $2 support level would indicate a lower low and correction for the $XRP price due to a breakout of a bullish market structure.
In such a case, investors need to focus on the support level of $1.79 which has prevented the price from falling below earlier.
Open interest amid growing bullish sentiment
XRP open interest reached $4.23 billion, the highest since March 4, according to data from Coinglass.
Furthermore, the XRP OI weighted funding rate rose to 0.0115%, reflecting the increase in bullish trading. This increases the likelihood of the XRP price rising.
In the final decision, the SEC is asked to dissolve the injunction against Ripple and release the seized $125 million escrow payment. Of the $125 million, the SEC will receive $50 million for the settlement as a final payment.
This is a bullish development for XRP and will trigger a major rally for the token's price when Bitcoin's rally cools.
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