XRP commenced July with remarkable momentum, surging over 13% within the first three days. The digital asset jumped from approximately $1.03 to nearly $1.18, capturing the attention of traders and investors alike.
This surge coincided with a broader recovery in the cryptocurrency market, where the total market capitalization increased by 0.86%, reaching $2.18 trillion. Notably, Bitcoin surpassed the $62,000 mark, while Ethereum rose above $1,700.
The positive sentiment was further fueled by disappointing U.S. jobs data, which revealed that only 57,000 jobs were added in June—significantly below the forecast of 110,000. This underwhelming performance raised expectations for potential easing of monetary policy, contributing to the upward trend in the crypto market.
Technical analysts have also noted significant patterns emerging in XRP’s price chart. Analyst ChartNerd highlighted an 8.5-year cup and handle formation, warning that ignoring XRP around the $1 mark could be a costly mistake. He suggested that if the Fibonacci support level holds, it could pave the way for significant upward movement, with potential price targets of $8, $13, and $27.
CLARITY Act Enhances Regulatory Outlook
A key driver behind XRP’s recent gains has been the progress of the CLARITY Act in the U.S. Senate, which may reshape the classification of digital assets under U.S. law. This legislative momentum has encouraged traders to view XRP more favorably, especially with its recent mention in the SEC/CFTC Digital Commodities category.
Moreover, Ripple co-founder Chris Larsen’s investment in the American Perpetuals Exchange Corporation, linked to Senator Kirsten Gillibrand’s son, has added to the interest surrounding XRP during this pivotal period.
ETF Inflows Boost Investor Confidence
As of July 2, XRP funds recorded impressive daily inflows of $6.55 million, bringing cumulative inflows to $1.49 billion and net assets to $987.91 million. This trend reflects growing investor confidence in the asset.
In a broader context, spot Bitcoin ETFs also saw a return to inflows, recording $221.72 million in daily net inflows, thus ending a streak of outflows that lasted for ten days. Cumulative net inflows for Bitcoin ETFs have now reached $51.08 billion, while Ether spot ETFs added $29.08 million on the same day.
Historically, July has proven to be a lucrative month for XRP investors, with the asset showing positive returns in seven of the past seven years. The average return for July since 2013 stands at 10.4%, with a notable gain of over 48% in July 2020 alone.
At present, XRP is trading near $1.1714 on the four-hour chart, with the Relative Strength Index (RSI) indicating an overbought condition at 79.91. The Chaikin Money Flow metric stands at 0.21, suggesting strong buying pressure.
Currently, XRP faces key resistance at $1.20, with a potential breakout opening the door to $1.25. Conversely, if the price dips below $1.15, the next support level is anticipated at $1.10.
