XRP Price Prediction: There's Big Whale Power and the SEC Can't Appeal
2024-08-28Bittime - XRP, the native token of Ripple, is showing impressive performance in the crypto market. While Bitcoin (BTC) and Ethereum (ETH) saw declines amid market uncertainty, XRP posted a 1.7% gain to $0.5973.
This article will discuss the main factors influencing the price of XRP, including whale activity, MVRV signals, as well as the latest developments in the SEC's lawsuit against Ripple.
Whale Activity and Its Impact on XRP Price
XRP price showed significant bullish indications by breaking the resistance at $0.6, driven by aggressive whale activity. On-chain data from Santiment reveals that whales have purchased more than 50 million XRP.
Additionally, the number of tokens held in wallets with a value between 1 million and 10 million continues to increase. Whale transactions with a value of more than 1 million USD increased to 25 on August 26, indicating a positive long-term outlook.
Also read: Solana (SOL): Here's Everything You Need to Know!
MVRV Signal and Potential Price Increase
The Market Value Realized Value (MVRV) indicator shows an increase of 2,445%, indicating that investors are currently holding XRP at a profit.
This is a bullish signal indicating a potential price increase. However, investors need to be careful as an increase in MVRV could lead to selling pressure if token holders decide to take profits, which could result in a price correction.
SEC Lawsuit and Its Impact on XRP
The lawsuit from the Securities and Exchange Commission (SEC) against Ripple continues to be a hot topic. Even though a final decision has been rendered by the court, uncertainty still surrounds whether the SEC will appeal.
Currently, the SEC has not revealed the direction of its action, and Judge Analisa Torres has not issued an injunction against the sale of XRP to institutional investors.
Although Torres provided an injunction warning Ripple not to violate US securities laws, there is no guarantee that XRP will not suffer negative impacts if the SEC decides to appeal.
The potential appeal could cause volatility in the price of XRP, with the possibility of a mass sell-off.
XRP Price Prediction: Reverse Head and Shoulders Pattern
Source: TradingView
XRP is currently preparing for a breakout of an inverted head and shoulders pattern that could lead to a 21.6% gain.
After a minor correction from last week's move to $0.63, XRP price is showing support at the 20-day exponential moving average (EMA) at $0.5863.
This pattern is formed when the price of XRP forms three relative valleys, with the middle valley (head) being lower than the two valleys on the outer sides (shoulders). The neckline (dotted) connects the tops of the shoulders.
A breakout above the neckline signals a potential 21.6% upside towards $0.74. Traders can take advantage of long positions after the breakout with a stop loss below the same neckline.
Conclusion
XRP price shows significant bullish potential with support from whale activity and positive MVRV signals.
Although legal uncertainty from the SEC could still influence prices, the inverted head and shoulders pattern indicates promising upside. Investors should monitor these developments closely and be ready to respond to market changes.
Continue to monitor XRP price movements and don't miss investment opportunities amidst the potential for attractive price increases.
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