Ripple (XRP) trades around a key psychological level of $0.60, early on Monday. The altcoin recently made headlines for its highest weekly gain of 2024, over 40%. XRP sustained nearly 21% of the gains from the last seven days.
Securities & Exchange Commission (SEC) vs. Ripple lawsuit and Bitcoin price trend have been the key market movers for the altcoin in July. The correlation between Bitcoin and XRP is 0.67, considered as moderate.
Ripple is currently in an upward trend, forming higher highs and higher lows on the daily chart. XRP could extend its gains by nearly 15% and hit $0.70, a key level for the altcoin. Ripple faces resistance at $0.6666, the 78.6% Fibonacci resistance of the decline from the March 11 top of $0.7440 to the July 5 bottom of $0.3823.
The Moving Average Convergence Divergence (MACD) indicator suggests there is underlying positive momentum in Ripple’s uptrend.
XRP/USDT daily chart
Ripple could find support at $0.5632, the 50% Fibonacci retracement level of the decline. A daily candlestick close under $0.60 could invalidate the bullish thesis for the altcoin.
Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.