XRP aims to catch the altcoin season
XRP aims to catch the altcoin season
Ripple’s cryptocurrency, XRP, has reacted relatively calmly to the latest attack from the SEC and, after a prolonged period of consolidation, is preparing for a breakout.
Since the start of the week, XRP has been trading slightly in the green. On Monday, the cryptocurrency briefly surpassed the $0.55 mark before retreating to $0.54.
Even this result can be considered satisfactory, as XRP managed to maintain its price despite the SEC filing an appeal against Ripple. Currently, XRP is in the midst of a three-week consolidation phase, fueled by reports of large withdrawals from exchanges by whales. Recently, 52 million XRP worth nearly $29 million were withdrawn from the South Korean crypto exchange Bybit, signaling potential further growth.
XRP also received a boost from a statement by Elon Musk. During a rally in support of Donald Trump in Pittsburgh, Pennsylvania, Musk was asked about the possibility of financial institutions adopting the XRP Ledger. He responded, “This is definitely not an endorsement or opposition to XRP, but I do think that cryptocurrency inherently promotes individual freedom.”
Following this, data from Santiment showed a significant increase in activity on the XRP Ledger. In one day, 3,858 new wallets were created, marking the largest growth in seven months. Additionally, 35,799 unique addresses were involved in at least one XRP transaction, the highest in three months.
According to XRP community enthusiast Zach Rector, the minimal losses XRP suffered at the end of last week after the SEC’s appeal clearly indicate that “the suppression of XRP’s price is over.” Therefore, there’s no reason why XRP shouldn’t participate in this season’s bull market, especially with its legal status now more clarified.
Preparing for a Jump
According to AMBCrypto’s technical analysis, XRP looks optimistic for bulls as the cryptocurrency has broken out of its three-week consolidation zone and surpassed the 200-day exponential moving average (EMA). Based on recent price action and historical momentum, if XRP closes the daily candle above $0.558, there’s a strong chance the asset could increase by 17% and reach $0.65 in the coming days.
However, while the outflow of XRP from exchanges points to further growth, a significant rise in volume on the futures market and a slight dominance of short positions, according to CoinGlass, suggest that some obstacles may lie ahead on its upward path.
Whether XRP can recover in the coming months will largely depend on the broader market situation and any significant changes in Ripple's business operations or legal matters.
