XRP Price Needs To Hold This Level For Bullish Confirmation

The XRP price surged over 8% following the SEC’s filing of its agreement with Ripple yesterday. Now, crypto analyst Egrag Crypto has commented on the altcoin’s price action and revealed what needs to happen for it to confirm a bullish breakout.

The price of XRP, the cryptocurrency developed by Ripple, has surged over 8% following the US Securities and Exchange Commission’s (SEC) filing of its agreement with the firm yesterday, July 26. Now, crypto analyst Egrag Crypto has commented on the altcoin’s price action and revealed what needs to happen for it to confirm a bullish breakout.

In an X post, Egrag Crypto stated that in the short term, XRP must close above $2.41 to $2.50 to confirm a bullish breakout. He noted that the altcoin is at a crossroads, trading between critical breakout levels and potential retest.

“A failure to break the range around $2.30 and begin consolidation could mean that the price correction isn’t over yet. Below $1.30/$1.20 is where we might see lower targets and the ultimate retest. A drop to this zone would present a once-in-a-generation buying opportunity,” the analyst said.

However, Erag Crypto still expects to see the price of XRP rally to as high as $27 in this market cycle, as he stated that his cycle targets haven’t changed. Crypto analyst Dark Defender also recently indicated that the journey of Ripple’s native crypto to double digits has begun.

This bullish outlook for the altcoin comes amid the US SEC’s filing of its settlement agreement with Ripple. This development further brings the long-running legal battle closer to a conclusion. A conclusion of the case would bring market clarity for investors and is undoubtedly bullish for the altcoin.

After months of legal disputes with the SEC, the crypto behemoth agreed to settle the case out of court. The agency had sued Ripple in December 2020 for allegedly conducting an unregistered securities offering through its cryptocurrency, XRP. Throughout the lawsuit, the SEC asserted that XRP should be classified as a "security" due to its ties to a central issuer.

However, in a joint filing with a federal judge on Wednesday, July 26, both parties reached an agreement to dismiss the case with prejudice. This implies that the case cannot be reopened in the future.

The agency and the blockchain firm agreed to settle administrative law violations of Section 5 of the Securities Act of 1933. These violations relate to the sale of XRP to institutional investors in 2013 and 2014.

Moreover, the SEC has agreed to return any unjust enrichment to institutional investors who bought XRP during the relevant period.

The SEC’s agreement to return any unjust enrichment is noteworthy. Usually, when a case settles, the regulator keeps any penalties levied on the accused party. However, in this instance, the SEC is returning the funds to investors.

This decision could be linked to a statement made by SEC Chair Gary Gensler earlier this year. Gensler had expressed concern over the lack of clear crypto market rules, which he believes had led to widespread fraud. He also noted that he planned to pursue any entity that flouted the applicable securities laws.

Amid this prediction for the XRP price, Ripple whales have moved over $175 million worth of coins.

Whale Alert data shows that one whale moved 46.4 million XRP ($106.6 million) from an unknown wallet to another unknown wallet.

Another whale then moved 29.5 million XRP ($69.5 million) from an unknown wallet to top crypto exchange Coinbase. Transfers to exchanges are typically bearish, as it suggests the holder plans to offload these coins.

However, whales look to be actively accumulating at the moment, which is bullish for the XRP price. As CoinGape reported, Ripple whales moved 782 million XRP to unknown wallets. Transfers to unknown wallets usually indicates that the investor is planning on holding these coins for the long term.