XRP price breaks out of range at 25% rally, but why?

Crypto markets are glowing a little greener on September 22 as Bitcoin (BTC) rose 4.7% to trade above $19,300 and Ether (ETH) rose 6.5% to recapture the $1,300 level.

RSR and Astar Network (ASTAR) were also up 23 percent and 17 percent respectively, but the more notable mover of the day was XRP.

Currently, the price of XRP reflects a gain of nearly 25%, while the asset is up 41% in the past month. According to defense attorney James K. Filan, on September 18, Ripple Labs filed a motion for summary judgment – a legal process in which the court makes a final decision based on the facts presented instead of ordering a trial – and will rule on it. Whether or not XRP is a security is expected in mid-December.

The excitement over the news could be improving investor sentiment about XRP’s long-term prospects.

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From a technical analysis point of view, XRP price has risen sharply over the past 24-hours from long-term downtrend line resistance and trading volume and open demand for futures contracts.

XRP/USDT 1-day chart. Source: TradingView

According to Cointelegraph market analyst Marcel Pechmann:

“XRP open interest now stands at $575 million, up from $310 million a week ago.

Traders who have not yet taken positions may want to wait to see if the 200-day moving average at $0.49 emerges for support in the next few daily closes. Typically, insiders and swing traders profit from long-term resistance levels and also anticipate price rejections and lower support tests after the asset manages a long-term consolidation, bearish or market structure-changing move.

Crypto analytics data provider TheKingfisher drives home a similar point, suggesting that buyers “may have an opportunity to depress XRP.