According to pseudonymous chartist Cryptoinsightuk (@Cryptoinsightuk), the price of the XRP token has experienced an explosive upside on each of the last five occasions when the token was heading into overbought territory on the hourly chart.
The relative strength index is a widely used momentum oscillator used for determining whether a certain asset is overbought or oversold. RSI values above 70 typically indicate overbought conditions.
If history is any guide, XRP token could experience a price rally once again due to overbought conditions.
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XRP is currently trading at $0.61 on the Bitstamp exchange after surging by more than 6% over the last 24 hours.
Notably, the XRP token is also in the process of forming its third consecutive green candle on the weekly chart.
All eyes on settlement talks
Earlier this month, XRP token experienced a sharp rally due to persistent rumors about a settlement-related meeting between the SEC and Ripple. It managed to overshadow the broader cryptocurrency market with high levels of FOMO.
However, the price of the token pared some gains after the meeting was apparently postponed. As reported by U.Today, the meeting has now been rescheduled for July 25.
Last week, Ripple CEO Brad Garlinghouse refused to comment on potential settlement talks with the SEC. However, he did mention that the longstanding lawsuit between the two companies was expected to be resolved “very soon.”
One of worst-performing coins
As reported by U.Today, XRP cryptocurrency recently appeared on the list of digital assets that have to be avoided by investors. It is worth noting that the token is trading at the exact level it was trading around that time in 2018, meaning that investors who purchased XRP back then barely made any profits. The token has been consistently underperforming Bitcoin and Ethereum despite gaining some semblance of regulatory clarity with last year’s ruling.
Hence, XRP holders are desperately waiting for a catalyst that could get the token out of a multi-year lull. Presently, they are pinning their hopes on the seemingly imminent resolution of the SEC v. Ripple lawsuit injecting some life into the token.
Arman Shirinyan
Gamza Khanzadaev