Ripple's Legal Battle with SEC Concludes, Propelling XRP Price by 8%
With XRP on a Roll, Sustained Recovery Might Face a Hurdle
The digital token XRP is seeing some impressive gains recently, largely thanks to the conclusion of the years-long Ripple-SEC lawsuit. The settlement between Ripple and the SEC, which involves Ripple paying $50 million out of the initial $125 million penalty, has certainly helped fuel the XRP surge.
However, as XRP continues to climb, one factor that could potentially dampen its progress is the increasing profits among short-term holders (STHs). A lower MVRV Long Short difference, currently at a 31-month low, indicates that STHs are booking profits, a trend that could turn out to be bearish for the market.
These STHs, who are often quick to liquidate their holdings, might decide to cash out given the rising profits. This could limit XRP's upward trajectory, making it difficult for it to surpass key resistance levels. Moreover, speculative selling might increase if XRP's price experiences any short-term fluctuations.
The overall momentum of XRP displays a mixed picture. On one hand, the Ichimoku Cloud indicates a bearish market sentiment, signaling a potential downtrend. On the other hand, candlesticks seem to be gearing up for a potential breakout above the Ichimoku Cloud, a shift that could turn the tide in favor of XRP and aid it in challenging higher resistance levels.
Could XRP Break Through?
In the last 24 hours, XRP's price has increased by 8%, partly due to broader market optimism and Ripple's settlement with the SEC. Currently trading at $2.29, XRP faces a significant hurdle at $2.38, a level it has struggled to penetrate for over seven months.
If STHs decide to sell at current prices, XRP might find it challenging to breach the $2.38 resistance. This could result in the altcoin remaining consolidated in a range between $2.38 and $2.12, preventing a meaningful breakout. However, if XRP manages to surpass the $2.38 mark and transform it into support, it could trigger a more sustained rally, potentially spurring a climb up to $2.56.
In essence, whether XRP can break through the $2.38 resistance depends on whether it can maintain its current momentum and resist the selling pressure from STHs.
Caveats and Considerations
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Enrichment Data:- Profitable STHs could potentially choose to reinvest their gains into XRP, increasing buying volume and reinforcing the price rally toward resistance points.- Profitable STHs may also opt to sell near resistance levels, causing selling pressure that could prevent XRP from breaking above key resistance levels.- A strong market demand is necessary to support XRP's breakout and sustain its momentum.
- Despite the bullishness surrounding XRP, its progress might be hindered by the increasing profits among short-term holders (STHs), who might decide to cash out, limiting XRP's upward trajectory.
- If STHs sell at current prices, XRP might find it challenging to breach the $2.38 resistance, potentially resulting in the altcoin remaining consolidated in a range.
- However, if XRP manages to surpass the $2.38 mark and transform it into support, it could trigger a more sustained rally, potentially spurring a climb up to $2.56.
- Profitable STHs could potentially reinvest their gains into XRP, increasing buying volume and reinforcing the price rally toward resistance points.
- A strong market demand is necessary to support XRP's breakout and sustain its momentum, as speculative selling might increase if XRP's price experiences any short-term fluctuations.
