The cryptocurrency market faced a downturn today, with on-chain activity indicating ongoing MTGOX returns affecting sentiment. Despite the recent listing of the ETH ETF, Bitcoin (BTC) remained below $66,000 at the time of writing. While long-term optimistic developments are in sight, short-term negative trends are currently overshadowing them, suggesting a possible delayed rally. How is XRP Coin faring in this climate?
What is the Status of XRP Coin?
Since 2021, XRP Coin has struggled to reach above $1. The protracted legal battle with the SEC, which started at the end of 2020, has seen significant developments but no conclusive victory for Ripple. Last July, false news about BlackRock’s ETF application for XRP Coin momentarily pushed its price above $0.9. However, this upward move was short-lived.
The weekly chart reveals a symmetrical triangle pattern squeezing XRP’s price since 2018. The upper trend line is currently being challenged by bullish forces. A successful breakout could see the price hitting the main resistance level of $1 in the coming months, provided it closes above $0.86, which requires nearly a 50% gain.
Future of XRP Coin?
Data from Santiment shows a divergence in recent weeks, with whale interest on the rise. Holdings of the largest group of tokens have increased from 40.24% to 41.44%. Additionally, addresses with holdings between 1 million and 10 million XRP Coins are also accumulating. This growing interest from professional investors may be driven by the potential for a settlement with the SEC.
The ongoing lawsuit has not favored the SEC. With the approval of the ETH ETF, SEC Chair Gary Gensler suffered a significant setback in his campaign against altcoins. Gensler aims to leave office by February, and exiting without resolving this issue might further stain his legacy. Throughout the lawsuit, there have been several embarrassing moments for his team.
Key Insights
Here are actionable insights for investors:
- XRP needs to close above $0.86 for a potential rally to $1.
- Whale accumulation suggests confidence in XRP’s future prospects.
- Legal developments with the SEC could significantly impact XRP’s price.
- Monitoring on-chain activities can provide early signals for market movements.
In 2023, Judge Analisa Torres ruled that XRP is not a security when sold on digital asset exchanges, marking a significant win for Ripple. Although institutional sales might still be considered securities, a reasonable penalty could settle these issues. A postponed meeting to July 25 might be one of the last chances for a summer resolution, potentially bringing good news soon.
