- XRP price has rallied by nearly 22% in the last three days, causing the market to overheat.
- Unlike other altcoins, XRP whales haven’t made any significant movement, which historically has favored a price rise.
- Sell signals can be observed on the on-chain indicators as the market value of the asset is currently at a six-month high.
XRP price has been rising impressively, drawing investors towards the crypto asset. However, these traders might want to brace for a potential pullback following the recent rallies despite the Ripple community preparing for a win against the SEC.
Ripple vs. SEC to end in favor of the crypto community
Ripple supporters are pining for a win in the ongoing Securities and Exchange Commission (SEC) lawsuit. Despite the recent session noting no major development, Ripple President Monica Long stood with the community expecting an optimistic turnout. This is also because Ripple is prepared to even move out of the country should they lose the case, making sure business won’t be affected, whatever the outcome.
The crypto community is also expecting a change in the market trend should Ripple win the case. Traders are even anticipating a potential alt season following this win which would propel other crypto assets as well.
Ripple winning over the SEC would translate into altseason, so follow that closely even if not long "The Standard"— Alex Krüger (@krugermacro) March 29, 2023
Even those who do not stand with Ripple are hoping for a win – just to put the SEC back in its place.
Never thought I would be rooting for $XRP like this, but they need to win their lawsuit against the SEC so that we can establish boundaries. Because right now, their abuse of power has no limits.— Satoshi Flipper (@SatoshiFlipper) March 28, 2023
Furthermore, a similar notion can be observed when it comes to investors, especially in the case of one of XRP’s biggest cohorts – the whales. XRP whales have only been acquiring the altcoin but have not really been active in moving it around much. Whale transactions have been average, with no significant movement noted in a while. Historically this indicates bullish expectations at the hands of investors.
XRP whale movement
However, traders must note that the market could flip if profit taking takes precedence. The 30-day Market Value to Realized Value (MVRV) ratio rising higher is evidence of the same. Standing above the neutral line, this zone has been synonymous with corrections in the past, and the XRP price could see some decline.
XRP MVRV ratio - 30-day
XRP price looks up to the sky
Akin to the MVRV ratio, the Relative Strength Index (RSI) is also suggesting corrections as the indicator has just breached into the overbought zone above 70.0. This shows that the market is overheated and needs to cool down, which could cause a price decline.
Should that be the case and XRP price end up falling through the critical support at $0.505, it could bounce back at $0.475 or dip to $0.432, marking a 20% crash. On the other hand, if the present bullishness persists, XRP could rise to test the critical resistance at $0.582.
XRP/USD 1-day chart
Flipping the same into a support floor would not only mark new highs for 2023 but also set XRP price up for a rise beyond $0.600 toward $0.644, noting a potential 20% rally.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
US SEC sues Coinbase after regulatory crackdown on Binance
The US SEC said Tuesday that it sued crypto exchange Coinbase, alleging that the platform operates as an unregistered security exchange. The announcement comes a day after the regulator filed a similar lawsuit against Binance, in a sign that the clampdown is extending to key players in the industry.
Ethereum tokens worth $3.1 billion moved on the blockchain as traders brace for incoming selling pressure
Ethereum circulation climbed to 1.73 million tokens on June 6, signaling a rising utility of the altcoin. A large volume of Ethereum’s supply has moved off exchanges, likely to self-custody wallets, alongside the Securities & Exchange Commission’s (SEC) crackdown on Binance.
SEC triggers crypto bloodbath as Coinbase, Kraken brace for token delistings after Binance lawsuit
The Securities & Exchange Commission (SEC), the premier US financial regulator, now controls $115 billion in cryptocurrencies with its lawsuit against Binance. In its latest move against Binance Holdings Ltd., the regulator expanded a list of digital tokens deemed unregistered securities.
Optimism price could shoot up by 30% after OP whales accumulation spree
Optimism (OP) price shows strength despite the market-wide sell-off on June 5. Additionally, the technicals and on-chain metrics both strongly suggest a bullish future for OP holders.
Bitcoin: BTC targets $30,000 as short-term bias turns bullish
Bitcoin (BTC) price shows a clear sign of the bulls’ victory. After failing to trigger a steep correction, bears look now out of context, at least in the short term, allowing buyers to restart a minor uptrend.