XRP is witnessing a notable rally, with its price climbing 4.90% to $0.65, marking a four-month high. The surge in value comes as traders focus on an upcoming closed-door meeting on August 1 between officials from the United States Securities and Exchange Commission (SEC) and Ripple Labs, with speculation surrounding potential legal settlements contributing to the bullish sentiment.
XRP/USD daily price chart. Source: TradingView
Market Reactions to Potential SEC Settlements
The anticipation of a settlement has intensified since comments from Ripple CEO Brad Garlinghouse, who indicated to Bloomberg two weeks ago that an agreement with the SEC could be imminent. Additionally, the SEC’s recent decision to retract its classification of certain cryptocurrencies, including Solana and Cardano, as securities has further buoyed market expectations. XRP has historically reacted positively to such speculation; for instance, a prior closed-door SEC meeting on July 24 saw XRP rise nearly 6% before quickly losing those gains when no significant updates were provided.
XRP’s richest investor count chart. Source: Santiment
Whale Accumulation Fuels Optimism
The current uptick in XRP’s price is part of a broader recovery trend that began on July 5, with the XRP/USD pair appreciating approximately 70% since then. Notably, the number of wallets holding at least 10,000 XRP has surged to a six-month high, indicating increased accumulation by larger investors, or “whales.” According to the analytics platform Santiment, 279,400 addresses of this nature are now recorded on the ledger.
XRP OI and funding rates chart. Source: Coinglass
Rising Open Interest Reflects Bullish Sentiment
XRP’s open interest in the futures market has also increased, reaching around $876.50 million—its highest level since April. This rise indicates a growing interest from investors, with funding rates shifting from negative to positive, suggesting confidence in further price movements.
XRP/USD daily price chart. Source: TradingView
Technical Analysis Shows Bull Pennant Breakout
Today’s gains align with a breakout from a bull pennant pattern, typically indicating further upward momentum. Analysts predict XRP could reach $0.75 by August, close to its March high. However, caution is warranted as bearish divergences and declining trading volumes suggest that the current uptrend may face exhaustion, warranting a potential retest of support levels.
