XRP has sustained its winning streak for the month of July as it looks to reclaim the $0.50 price point on the back of a rapid surge in price volatility.
XRP closed June on a bearish note, having shed off 8.46% of its value. The asset ended June below the $0.50 psychological price threshold, dropping to $0.47. However, a bullish start to July sees XRP seeking to reclaim $0.50 as price volatility spikes.
June was littered with SEC vs. Ripple lawsuit updates, triggering occasional shifts in market sentiments. As a result, XRP faced a series of price fluctuations, leading to a low of $0.4493 and a high of $0.5658.
With XRP investors anticipating a favorable ruling on the SEC lawsuit in the foreseeable future, XRP has leveraged a renewal of investor optimism to pick up some of the previous month’s losses. This has resulted in three consecutive intraday winning sessions in July.
XRP Eyes $0.50 as Volatility Rises
Capitalizing on this modest run, XRP aims to reclaim $0.50 and flip the territory into a launchpad for further gains. Amid this sense of ambition, the asset soared to a weekly high of $0.4961 on July 2. However, the bears battled against further gains, leading to a decline from the lofty position.
Despite the price drop, XRP closed July 2 with a 2.39% increase. This marked its highest intraday gain in over three weeks. Notably, the XRP decline in late June coincided with a sharp decrease in volatility. However, volatility has picked up amid this recovery campaign.
Volatility can significantly impact the price of XRP due to its effects on market dynamics. When XRP experiences higher levels of volatility, it tends to attract speculative traders and investors looking to capitalize on short-term price movements.
Increased volatility creates trading opportunities as price fluctuations become more pronounced. Traders who thrive on volatility may enter the market. This increased trading activity can lead to a surge demand for XRP, exerting upward pressure on its price.
XRP’s Price Position
Despite the winning streak, XRP’s current price position suggests mixed sentiments in the market. Notably, XRP retested the 200-day EMA ($0.4567) on June 30. A successful bounce off this significant level of support indicates strong buying interest and investor confidence.
Currently trading at $0.4886, XRP has continued to remain above the 200-day EMA, suggesting that market sentiment remains bullish, with potential support for upward price momentum.
Though XRP currently stands above the 50-day EMA ($0.4855), the gap is currently narrowing. This signals a potential convergence between short-term and long-term price trends. It indicates that bullish momentum may be dropping, and the price could be approaching a period of consolidation or a possible reversal.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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