XRP has had a strong 24 hours, and we’ve finally seen the long downtrend break to the upside.

The question now becomes – can the move hold?

Since making highs of around $1.80 in April, XRP has been steadily making a series of lower highs and since May, we can see a very clear downtrend. This also coincides with a number of bullish patterns on the long-term charts as well.

However, we need to understand that there are a couple of things that are at play that will likely keep a cap on the gains in the short term.

One that is not discussed all that much is the impact of the selling from the former Ripple co-founder. Ripple co-founder Jed McCaleb is now selling an average of 1,740,000 XRP per day, which would explain a fair bit about why price has been capped. The good news is that we are nearing the end of his selling and this would be very bullish.

The other concern is clearly the SEC case against Ripple surrounding its status as a currency. This was also delayed so we have to assume that we might not get clarity on this for some time. However, without that huge selling pressure, we might see a push higher.

I am still in the camp that strongly believes we are going to see strong regulation coming to the US sooner rather than later. While XRP in my eyes is one crypto that will survive the regulation push given its vast network of partners and use case, there will be many that do not. That will clearly weigh on the entire sector.

For the time being, price (and the sector) is bullish and we could very well see price tick back to the 80 cent level.