Pseudonymous chartist Cryptoinsightuk suggests that XRP might be on the verge of a significant price increase. Historically, each time XRP approached overbought conditions on the hourly chart, the token saw a substantial upward move. The relative strength index (RSI), a key momentum oscillator, indicates whether an asset is overbought or oversold. When the RSI exceeds 70, it signals overbought conditions.
Based on historical trends, XRP could again experience a notable price rally under similar circumstances. Currently, it trades at $0.61 on Bitstamp and has surged more than 6% over the past 24 hours. Additionally, the token is forming its third consecutive green candle on the weekly chart, suggesting a bullish trend.
Focus on Settlement Talks
Earlier this month, XRP saw a sharp rally fueled by persistent rumors about a settlement meeting between the SEC and Ripple. This speculation led to a surge in market excitement, overshadowing the broader cryptocurrency market.
Related article: Ripple’s XRP Transactions and SEC Case Stir Market Activity
However, the token’s price retracted after news of the meeting’s postponement. The meeting has now been rescheduled for July 25, renewing interest in it. Ripple CEO Brad Garlinghouse recently declined to comment on potential settlement talks with the SEC. Nonetheless, he hinted that the long-standing lawsuit might be resolved “very soon.”
XRP’s Underperformance
Despite recent developments, XRP has recently appeared on lists of digital assets to avoid. The token is trading at levels similar to those of 2018, meaning that investors from that period have seen minimal returns.
Related article: XRP Whales’ Significant Transactions Boost Market Sentiment
XRP has consistently underperformed compared to Bitcoin and Ethereum, even though last year’s regulatory clarity provided some hope. Consequently, its holders are eagerly awaiting a catalyst to lift the token from its prolonged stagnation.
They are particularly hopeful that the anticipated resolution of the SEC v. Ripple lawsuit will provide the boost needed to rejuvenate XRP’s performance and value.
