XRP Price Soars As SEC Requests Dismissal of Ripple Lawsuit: Potential 70% Rise Predicted
Summary:
The price of XRP (XRP) experienced a notable increase following the US Securities and Exchange Commission's decision to request a dismissal of the lawsuit against Ripple's co-founders. The cryptocurrency's value rose by around 9% post-announcement, reaching its two-week high of $0.53. Ripple's consistent legal victories have sparked a surge in XRP demands among the richest investors or 'whales.' Despite the significant rise in XRP's price, no substantial shifts were noticed in its derivative market. A potential breakout of XRP price might lead to a rise of up to 70%, whereas a breakdown could cause a significant drop in its price. This analysis does not furnish investment advice. Decisions concerning investment and trading need detailed research due to the associated risks.
The price of XRP (XRP) has risen today, spurred on by the Securities and Exchange Commission (SEC) of the United States soliciting a federal judge to dismiss the lawsuit against Ripple's co-founder, Christian Larsen, and Brad Garlinghouse, the CEO. The digital currency saw an approximate 9% increase, hitting $0.53 following the said announcement, marking its highest point in two weeks. The ongoing Ripple victories have resulted in growing XRP demands. Previously, the SEC had blamed Larsen and Garlinghouse for illegally selling one billion dollars' worth of XRP tokens, claiming them as unregistered securities. However, Judge Analisa Torres of the U.S. district court declared in July that XRP, when sold to the public on digital exchange platforms, is not a security. In October she also rejected the SEC's plea against her ruling.
Ripple’s legal triumphs appear to have triggered a desire to accumulate more XRP among the cryptocurrency's richest investors or 'whales.' Since July, the volume held by investors with 10,000,000 - 100,000,000 XRP has risen more than 1%. Interestingly this increase came alongside a decline in the XRP supply held by the 1 Million - 10 Million token group. This signals that accumulation has been ongoing by the 10 million-100 million XRP group, with outcoming flow from the lower balanced group being absorbed. Similarly, the 1 billion-infinity XRP balance group has been soaking up the decrease in supply from the 100 million-1 billion XRP balance group.
Over the last 24 hours, XRP’s growth is attributed to a technical bounce back. The cryptocurrency has undergone a major uptick after its multi-month ascending trendline support underwent testing on the weekly graph. As of October 2023, support was expected to be around $0.49, a figure that often sees increased trading, according to the XRP Volume Profile indicator.
The recent rise in XRP’s value is not accompanied by major shifts in its derivative market. The open interest of the cryptocurrency, which represents the total value of outstanding contracts, has seen a rise of over 15%, amounting to $554.14 million. That is still lesser than the $1.19 billion open interest following the July court decision.
Technically, XRP's price could remain confined between $0.56 and its upward trendline support through October 2023. However, should it break above $0.056, XRP could reach $0.87, a 70% rise from current prices, by late 2023 or early 2024. On the other hand, if it breaks below the upward trendline support, it could lead to a bearish breakdown scenario, where the target price could be approximately $0.25, almost half of the current rates.
Investors should practice caution as this article does not offer any professional investment advice or suggestions. All forms of investment and trading involve risk, hence it is vital for investors to conduct detailed research before making any decision.
Published At
10/20/2023 11:02:06 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.