The native cryptocurrency of Ripple, XRP, was subjected to intense selling pressure last week, which caused its price to fall below $0.50. But over the weekend, XRP began to show signs of a strong comeback. It is now trading at $0.5299, up 1.68%, with a market valuation of more than $28 billion.
Santiment’s on-chain analytics indicate that XRP whales have come back to the market and are stockpiling the currency during price drops. The current 4% price gain supported by significant XRP investors, has helped to subtly signal a rebound in the XRP network.
A significant amount of XRP, ranging from 10 million to 1 billion tokens, is held by a total of 221 addresses. These addresses currently have 16.13 billion tokens totaling about $8.71 billion in their possession.
The SEC’s submission of an interlocutory appeal in the XRP ruling last week was what first caused the selling pressure on XRP. It’s interesting to note that the SEC stated in their court brief that XRP might not be regarded as a security, mentioning in particular that the underlying assets are computer code with no intrinsic value.
John E. Deaton, an attorney for Amicus Curiae, commented on the SEC’s admission and emphasized that the SEC’s concession was greatly influenced by the vast number of Ripple investors. Deaton further emphasized that the goal of their justifications was to prove that the token itself was not a security.
The resistance level of $0.5750–$0.5900 was below the XRP/USD price on the daily chart. However, the weekend’s strong momentum helped XRP surpass the 200-day EMA. Despite this encouraging trend, the cryptocurrency continued to trade below the 50-day exponential moving average, implying short-term bearishness but longer-term bullishness.
According to the analysis of the 14-day Relative Strength Index (RSI), which is at 34.14, the sentiment is bearish. This RSI reading is in line with the 50-day EMA, which raises the prospect of a slide beneath the $0.4920–$0.4780 support level, possibly even below $0.47. However, if XRP is able to hold above the 200-day EMA, it might open the door for a bullish effort to break past the $0.5750–$0.5900 resistance region and the 50-day EMA.
