Ripple’s XRP set for a bullish breakout; check forecast

The cryptocurrency market is having a positive start to the week, with Bitcoin and Ether currently in the green. Bitcoin is trading just below $108k while Ether looks set to hit the $2,500 mark once again.

The week promises to be an interesting one, with traders keeping an eye on macroeconomic data such as the May job openings, the Labor Turnover Survey, as well as June nonfarm payrolls and the unemployment rate.

Furthermore, traders are also turning their attention to tomorrow’s speech by Jerome Powell at an ECB forum panel alongside central bank governors from the UK, South Korea, and Japan.

While Bitcoin and Ether will take center stage, Ripple’s XRP is another coin that will be in the mix. XRP could rally higher this week amid strong fundamental and technical indicators. 

XRP to rally higher as SEC-Ripple case approaches conclusion

XRP, the native coin of the Ripple ecosystem, could be one of the best performers over the next few days. Its rally could be fueled by the ongoing case between Ripple and the United States Securities and Exchange Commission (SEC).

On Friday, Ripple Labs’ CEO Brad Garlinghouse revealed that the company is dropping its appeal against the regulator in a prolonged legal battle tied to the sale of its XRP tokens.

The announcement is set to bring the dispute closer to resolution after years of back-and-forth between the company and the regulator. The two sides agreed to settle if the judge set aside her injunction and approved lowering the $125 million fine she had imposed on Ripple. While the judge rejected their request, market participants anticipate that the case is now closer to its end.

Ending the case will be beneficial to Ripple Labs as it would allow the company to focus on its products, especially its recently launched stablecoin, RLUSD. This could benefit XRP as investors can purchase the tokens without the fear of regarding it as a security.

XRP is on the verge of a bullish breakout

The XRP/USD 4-hour chart is bearish, but technical indicators show that the pair is reversing this situation. XRP added 7% to its value over the last seven days and now trades around $2.18 per coin.

The MACD lines are within the positive territory, suggesting a bullish scenario for the cryptocurrency. Furthermore, the RSI of 58 indicates a fading bearish momentum for the pair. 

At press time, XRP is approaching its key resistance at $2.23. If the coin breaks and closes above this resistance level, it could extend the rally and hit the next major resistance level at $2.47. 

If XRP breaks and closes above its daily resistance at $2.23, it could extend the rally toward its May 23 high of $2.47. However, for the bullish momentum to be sustained, the RSI must enter the overbought region while the MACD lines remain in the bullish zone. 

On the flipside, if the bearish trend strengthens, XRP could extend the correction to retest its daily support at $1.90.

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