Key points:
- XRP is climbing alongside the broader cryptocurrency market, driven by upbeat investor sentiment.
- A joint filing by Ripple and the SEC, combined with a falling wedge chart pattern, suggests XRP could rally 40% to reach $3.12.
XRP’s price rose 2% on June 16, hitting an intraday high of $2.20, in line with broader gains across the cryptocurrency market.
The rally came as traders shrugged off escalating geopolitical tensions in the Middle East, instead focusing on growing optimism over a potential resolution in the SEC vs. Ripple lawsuit and supportive technical chart patterns.
XRP Price Bounces Back Amid Broader Crypto Market Recovery
The bullish momentum wasn’t limited to XRP, as the broader crypto market saw a strong rebound, driven by Bitcoin’s weekly close above $105,000. BTC climbed 1.7% on the day, trading around $107,000 at the time of writing.
Ether also posted solid gains, rising over 4% in the past 24 hours to trade above $2,600. Meanwhile, Solana (SOL) led the market with an impressive 8% daily jump, reaching $156. Overall, the global cryptocurrency market capitalization grew by 2.2%, hitting $3.34 trillion.
Market sentiment has notably improved over the past 10 days, despite recent volatility. The Crypto Fear & Greed Index — which gauges investor emotions and sentiment — dropped to 61 on June 16 from 71 on June 10, coinciding with XRP’s dip to $2.08.
Currently sitting at 61, the index remains in the “greed” zone, having climbed from “neutral” on June 6. Similar to the Relative Strength Index (RSI), this suggests there is still room for further upside before the market enters “extreme greed” or overbought conditions.
Ripple-SEC Joint Filing Fuels Investor Optimism
Renewed optimism over a potential resolution in Ripple’s long-running legal battle with the U.S. Securities and Exchange Commission is fueling hopes for greater regulatory clarity — a development that could further support XRP’s price.
On June 12, Ripple and the SEC submitted a joint motion asking Judge Analisa Torres to approve a settlement proposal. Under the terms, Ripple would pay $50 million to the SEC, while a previously proposed $125 million penalty would be reduced, with the remaining amount waived.
This comes after a similar motion was denied on May 15 due to procedural issues. However, the refiled request addresses those concerns, boosting expectations for a final resolution.
Attorney John Deaton has pegged the chances of Judge Analisa Torres approving the settlement at 70%. In a June 13 post on X, Deaton stated:
“There is a 70% chance that Judge Analisa Torres will approve the proposed settlement, despite some legal experts finding the joint motion’s arguments less convincing.”
If approved, the settlement would provide financial relief and regulatory clarity for Ripple, strengthening its market position and potentially driving increased demand for XRP.
XRP Price Sets Sights on 40% Upside Potential
XRP’s weekly chart reveals a falling wedge pattern, with the price currently testing resistance at the upper trendline around $2.25.
A decisive weekly close above this level could confirm a breakout, paving the way for a potential rally toward the wedge’s target of $3.12 — a 40% gain from current levels.
Falling wedges are generally considered bullish reversal patterns, and XRP’s continued consolidation within the wedge’s boundaries signals the likelihood of an ongoing uptrend. Supporting this outlook, the price remains above all major moving averages — a strong indicator of sustained bullish momentum.
