A recent resurgence of interest in XRP has been spurred by a post from Harry Harald, a prominent developer within the XRP community, marking his first communication since May. This update has incited a wave of reactions, with prominent figures within the cryptocurrency space suggesting that XRP could be on the verge of significant upward movement, potentially reaching $4.
At the start of the week, XRP experienced a decline, slipping to $2.77 before staging a minor recovery to approximately $2.82. Yesterday, the token traded around $3, only to face selling pressure that continued to influence its price action.
The ripple effects of Harald’s post have been felt throughout the community, with influencers like Alex Cobb amplifying the sentiment. Cobb indicated that a rebound towards $4 might be feasible, which would represent a substantial 42% increase from the current price of around $2.86. Achieving this target would break through a long-standing resistance level; XRP has not surpassed $3.80 since 2018, making such a move significant.
Technical analysis has provided additional support for the bullish outlook. Analysts have observed a TD Sequential buy signal on the four-hour chart, a tool that traders often utilize to identify optimal entry points following a series of declining prices. Historical data suggests that these signals have exhibited an accuracy rate of 60-70% on higher timeframes, with three out of four two-week buy signals since 2022 preceding major price rallies.
Moreover, XRP appears to have broken a downtrend after bottoming at $2.65 earlier this month, managing to hold above the 50% Fibonacci retracement level and the 50-day moving average, both of which are viewed as bullish indicators.
Despite recent price stagnation, particularly around the $3 mark which began in July, analysts are optimistic. XRP is currently below a recent swing high of $3.65, which marked a 25% drop from that peak.
Legal and regulatory narratives also play a significant role in shaping market sentiment. Reports have indicated that Ripple previously set aside $125 million in escrow following a final judgment by Judge Torres in their ongoing case with the SEC. Although the SEC agreed to a reduced penalty of $50 million earlier this year, the judge had rejected the request for further reductions. Both Ripple and the SEC subsequently withdrew their appeals in August, but the status of the escrowed funds remains unclear.
Additionally, speculation regarding the potential approval of an XRP exchange-traded fund (ETF) by the SEC in the near future is heightening bullish expectations, as supporters argue that a successful ETF launch could attract billions of dollars into the market.
The current landscape for XRP, marked by fluctuating prices and mixed sentiments, suggests that traders and investors are closely monitoring developments that could propel the token’s value in upcoming weeks.
