- 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.
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