XRP Price Rises Amidst Ripple's Opposition to SEC's $2B Penalty, Major Investors Increase Holdings
Summary:
XRP's price has increased by 2.5% in the past 24 hours and 6.95% for the week. The surge coincides with Ripple's opposition brief filed against SEC's $2 billion penalty demand. From a technical perspective, it's a part of a bounce from its multi-year ascending trendline support. The rise in XRP also reveals a significant buying activity by major investors. Analysts predict a further bull run based on fractal analysis of XRP's monthly chart, despite a lagging performance compared to the broader crypto market so far.
XRP (XRP)'s price has risen by 2.5% in the past day and 6.95% for the week, reaching an intraday peak of $0.551 on April 23. This increase came amidst Ripple's retaliatory brief submitted to the U.S. Securities and Exchange Commission (SEC), challenging its $2 billion penalty proposition.
The price hike of XRP reflects Ripple's recent legal fight against the SEC, which accuses it of illegal XRP token sales. In response, Ripple presented a counter-argument on April 22, seeking to minimize the settlement charges to a fraction of the demanded amount - $10 million instead of $2 billion.
Ripple defended against the large penalty put forward by the SEC, explaining that they didn't profit from institutional sales once taxes, losses, and revenues were accounted for. The firm cited similarities with the SEC's smaller fines in comparable regulatory disagreements, such as the LBRY situation.
Lawyers representing Ripple in their filing responded, "Ripple’s behavior wasn't severe. Its Institutional Sales targeted forty-one 'sophisticated individuals and entities' over eight years. The buyers were aware of the transactions they were partaking in and were motivated by their financial interests. There are no allegations stating Ripple tricked or misguided them."
This response from Ripple has been well received by XRP supporters, as evidenced by the subsequent price surge.
The recent uptick of XRP can also be considered as a result of capital rotation within the crypto ecosystem. For instance, XRP had increased about 25% against Bitcoin (BTC) after hitting its lowest point since January 2021, two weeks ago.
Though XRP has generally been behind in the 2024 price rally with a year-to-date (YTD) return of about -14 % on April 23. In comparison, the YTD return for the overall crypto market during the same duration was +46.70%, with Bitcoin leading the increase at 57.30%.
Consequently, some investors could be viewing XRP's suppressed prices as an attractive investment opportunity, hoping that it might recover and match or surpass the broader market's performance in time.
Today, the rise in XRP's price has also corresponded with a substantial purchase from major investors, or "whales". The count of investors possessing at least 1 million and 100,000 XRP tokens has notably grown in April. In parallel, the trend extends to smaller investors, or "fishes", where the count of entities possessing over 10,000 and 1,000 XRP tokens has shown similar growth.
Such build-ups generally indicate an anticipation for favorable price movements or developments as institutional and retail investors prepare to capitalize on beneficial market variables.
For instance, as per CoinShares' weekly summary, XRP funds were the only ones to experience capital inflows for the week ending April 19. Unlike XRP, Bitcoin and Ethereum registered negative net flows for the week.
From a technical standpoint, XRP's increase today is a result of a rebound from its multi-year ascending trendline support. The cryptocurrency has jumped above its 200-week exponential moving average (200-week EMA) at approximately $0.526. Currently, as of April 23, it aims to cross the 50-week EMA (the red wave) at around $0.556 to retry its descending trendline resistance at $0.596.
Using a fractal analysis of XRP's monthly chart, Analyst Milkybull Crypto predicts a further bull run. The fractal model displays XRP's price rebounding sharply from its ascending trendline support since 2020. Meanwhile, the volume, represented by the shaded green and purple area, has been decreasing, indicating a decline in trading interest.
In the 2014-2017 period, a similar price-volume trend led to a significant price movement. This prompts Milkybull Crypto to foresee a comparable "explosive rally" in the coming months.
This news does not serve as an investment guide or recommendation. All investments and trading moves involve risk. Therefore, readers should do their own research before making any decisions.
Published At
4/23/2024 2:09:22 PM
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