Ripple transaction count exceeds 1.38 million, XRP price likely to extend gains
- XRP transaction count crossed the 1.38 million mark for the first time since August 18.
- The SEC’s trials and tribulations on the Ripple lawsuit are relevant as XRP community expects a settlement of the case.
- XRP price consolidated below the $0.6400 level, as the altcoin eyes come back to $0.7500.
Ripple (XRP) remains a talking point among retail market participants that expect a settlement in the US Securities and Exchange Commission’s (SEC) lawsuit against the cross-border payment remittance firm. Amidst talks of settlement, there is a notable spike in the XRP transaction count.
XRP price traded sideways below $0.6400 throughout December, analysts predict a recovery in the altcoin.
Also read: Crypto exchanges serving Indian residents to comply with Anti-Money Laundering guidelines: Indian Parliament
Daily Digest Market Movers: XRP holders await settlement in SEC v. Ripple lawsuit, transaction activity in Ripple rises
- XRP holders are awaiting a settlement in the SEC’s lawsuit against Ripple, anticipation brews in the ecosystem. The closed doors meeting between the US SEC and Ripple on November 30, fueled hopes of a settlement talk between the two parties. Therefore, despite Ripple’s partial victory in the lawsuit, the SEC case continues to influence XRP holders’ outlook on the altcoin.
- The transaction activity in XRP is on a rise since mid-August 2023, it crossed the 1.38 million mark for the first time in three months, according to data from XRPscan.
Number of XRP transactions executed Source: XRPscan.com
- Brad Garlinghouse, Ripple CEO, shared his views on the SEC vs. Ripple lawsuit, with CoinDesk. Garlinghouse believes that if Ripple had failed to achieve a partial victory in the lawsuit and if the case against the executives had not been dismissed, the SEC would pursue litigation against other crypto projects aggressively.
- A possibility for settlement remains as XRP holders look forward to hearing dates scheduled by Judge Analisa Torres for 2024.
Technical Analysis: XRP price comeback to $0.75 remains likely
XRP price has been trending below the $0.6500 mark since the beginning of December 2023. XRP’s uptrend remains intact and the altcoin is likely to attempt a comeback to the $0.7500 level, previously seen on November 13.
XRP price is nearly 17% away from the target. The altcoin has support of the 10-day Exponential Moving Average (EMA) at $0.6209. In its rally towards the $0.7500 target, XRP price could face resistance at the 50% retracement level ($0.6820) of the decline from its July 13 local top of $0.9403 to the August 17 bottom of $0.4237.
XRP/USDT 1-day chart
In the event of a decline, XRP price could find support at the 50-day EMA at $0.6014. A daily candlestick close below the 50-day EMA could invalidate the bullish thesis for XRP price.
Cryptocurrency metrics FAQs
What is circulating supply?
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
What is market capitalization?
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
What is trading volume?
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
What is funding rate?
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
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