Whales Help XRP Surge To 6-Month High Crossing $0.53, Will Ripple Gains Sustain?

Whales Help XRP Surge To 6-Month High Crossing $0.53, Will Ripple Gains Sustain?

In the last 48 hours, XRP has gained nearly 15% in growth. The price rise can be seen as associated with the Ripple Labs vs. SEC case and its possible classification as a commodity instead of a security. Overall the cryptocurrency has surged to six month high of %0.53, which it last crossed in Oct 9, 2022.

Expert Opinions in the XRP vs. SEC Case

In the latest turn of events, there is ripe speculation that XRP might be classified as a commodity. This move, if it materializes, would send bullish signals across the cryptocurrency economy.

A lawsuit was filed by U.S. Commodity Futures Trading Commission (CFTC) against Binance. If US CFTC wins the case or even if it goes to trial, it might set precedence for cryptocurrencies being treated as commodities. Several law experts feel that CFTC should be the one regulating cryptocurrencies.

The possibilities are high for this as it is still unclear how US Securities Exchange Commission would prove that XRP clears the US Supreme Court-mandated Howey Test. The case is being heard in US District Court for the Southern District of New York.

Pro-Ripple lawyer John Deaton posted a risk-reward analysis on Twitter, which opines that if Ripple Labs loses the case, it may go to higher courts and obtain a status quo. If it wins the case, this will spiral the cryptocurrency prices upward.

XRP Price Analysis

Based on the above trend, we have done a price analysis to check if the trend is sustainable and what trading opportunities exist.

Daily Charts for 29 March 2023
Daily Charts for 29 March 2023

XRP is in an extremely nice spot, with all indicators signaling further price increases.

  1. RSI is very strong at 75. A bounce in RSI from here would signal an even stronger price trend.
  2. Trading volumes have been increasing positively for the last 4 days. Most trades are for purchasing XRP.
  3. MACD shows positive divergence as the MACD line is well above the signal line.
  4. A very bullish chart pattern is visible on daily charts, called the Three White Soldiers.
  5. A bullish breakout above $0.55 will send it further upwards after it breaks the resistance which was last tested in Nov 2022.

Overall the charts are signaling further growth in prices.

Let us look at a few more signals before we make the decision to buy.

XRP On-Chain Analysis

XRP On-Chain Transactions
XRP On-Chain Transactions

On-Chain transactions show a spike around March 19, just 10 days ago.  However, cryptocurrency just rose by 5%, which shows that the transaction has not yet impacted the market. These large transactions seem to whale accumulations. Further, there has been a spike in volumes that were not seen since the accumulation phase in Sep-Nov 2022.

XRP Transaction Volumes
XRP Transaction Volumes

Further, on March 19, there were 0.88 Million active addresses that whales might have activated.

Target and Stoploss

Based on Technical and Fundamental analysis, the XRP price may rise further.

Since it has crossed a resistance near $0.55, which was last tested in Nov 2022, it can now cross $0.86 if the decision of the SEC vs XRP case turns in its favor.

Target and Stoploss

The new target is XRP's last resistance of $0.86, which it touched in May 2022 during the LUNA Collapse. However, it is essential to trade cautiously as unfavorable news can cause prices to go downwards.

Therefore, we will keep a stop loss at $0.46, its last touched support.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

Related Stories

No stories found.
Voice Of Crypto