XRP has been trading above $1 for over five days now, with the crypto valued at $1.06 after weekly gains of 13% at press time. Now, while the growth seems decent, XRP’s trajectory relative to the larger market may be seen as slow.
Notably, Bitcoin was up by 25% on the weekly while ETH noted gains of 17% over the same timeframe. As the top two coins flipped crucial resistances to support, bridging the gap between their local tops, XRP was still 17% off its last local top of $1.4 in September.
While the XRP ecosystem has been a rather heated space owing to the SEC v. Ripple Labs episode, XRP got some much-needed social appreciation recently after XRPL Labs announced that offline payments might soon feature on XRPL.
The company also revealed the prototype of its Proof of Payments protocol. This can fuel “future retail adoption.” The effects of the same were spotted in the market as metrics for XRP turned hyper bullish.
Assessing what the metrics say
Over the past few months, XRP’s network health has started looking good, with active addresses hitting an all-time high at the time of writing too. In fact, Daily Active Addresses finally exploded after being on an uptrend since bottoming out in late July.
As highlighted by Santiment, this surge in users against a relatively quiet price action was a sign that it’s likely not speculators but “the actual deployment of users on the network for whatever use-case there is out there at the moment.”
A good part of XRP’s Daily Active Addresses could probably be stemming from the increase in new participants. This can be observed in the uptrend seen by the Network Growth metric.
Additionally, the sixth-ranked alt’s social metrics saw no major spike, and this lack of interest from the crowd has been healthy. All in all, XRP’s metrics painted a very bullish picture for the altcoin.
And yet, its price is still struggling to break the $1.1-resistance.
What about the price?
XRP’s price has been oscillating close to the $1-mark for quite some time now. The alt recorded its yearly high of $1.96 in April and since then, it hasn’t been able to inch ahead of that threshold. In fact, XRP’s short-term price movement looked rather market-oriented and it seemed like metrics skyrocketing didn’t do much for the alt’s price.
Additionally, lower trade volumes, as opposed to its rally in early August and May, were another worrying trend.
One reason behind this restricted price movement could be the mushrooming of altcoins like Stellar which seem to be challenging XRP’s dominance. On 6 October, for instance, Moneygram partnered with Stellar to enable cash funding and payout in currencies like USD, JPY using USDC. In doing so, Stellar made a strong case for CBDCs on its own blockchain.
While this might be a matter of concern, XRP coming up with the Proof of Payments protocol (xPoP) in the near future could help the network wade through this swamp of competition. The XRPL has also proposed to facilitate mass retail adoption of XRPL with the introduction of ‘Lite Accounts’ with lower reserve requirements.
As per the update, this would consume less XRPL space and help more users onboard it.
All in all, for the time being, XRP’s waning popularity and slow price action did seem to be matters of concern. However, XRP could pull itself out of this pothole by riding on the wave of its growing network strength.
This Will Act as a Catalyst in XRP Price Surge to 10x! What You Need to Know!
Ripple and SEC’s legal tussle, has been a matter of daily thoroughfare. As the case finds no end meeting with the judgement being enforced. On the other hand, Ripple’s stance on the case is strengthening with each hearing. While the inverse is going on with the U.S Securities and Exchange Commission.
Netizens expect the tug of war to subside, following a mutual settlement. Considering the present scenario. Where the stand of SEC is deteriorating, with each passing day. It is known that the judge has ordered the SEC to answer certain questions by Ripple. If the SEC loses the motion to strike the fair notice defense. They’d have to reconsider their stance on the case.
The lack of clarity is widely known by the community of crypto enthusiasts. Moreover, 40% of the SEC commissioner’s in support of the lack of regulatory clarity could also further impel SEC to seek a settlement. In addition, the U.S Department of Justice and Treasury had declared XRP to be a currency in 2015. Which would further weaken SEC’s stance.
Catalyst in XRP Price Going 10x
Analyst enlightens that, a year ago XRP Price was trading at 25 cents. While a couple of hours ago, it was trading at $1.10. Which is an approximate, 400% gain despite the high tides. Once the legal tussle is resolved, XRP would be the only crypto to have regulatory clarity. This would be of immense importance for XRP, and a lot of institutional investments could follow.
And the fundamentally strong protocol will open doors for numerous adoptions. In 2017, XRP had hit an ATH, while it was not listed on CoinBase. The listing will not be much of a concern, once the case is resolved. The analyst expects the coin to hit the milestone of $4 to $5, in 12-months time. Collectively, XRP will get its due share of hikes, with the case subsiding.
XRP price on the cusp of massive decline if this critical support level fails to hold
- XRP price is sitting above a key support level amid a prevailing downtrend.
- If Ripple fails to hold above $1.07, the token may see further decline toward under $1.00.
- The governing chart pattern suggests that XRP price could plunge 9% toward $0.97.
XRP price is trapped within a recent downtrend as the momentum has flipped to the downside. Ripple lagged behind while other cryptocurrencies, including Bitcoin and Ethereum, recently witnessed rallies reaching new all-time highs. If the cross-border remittance token fails to hold one crucial foothold, it could continue to edge lower.
XRP price at risk of 9% decline
XRP price has formed a descending parallel channel pattern on the daily chart since October 9, printing lower highs and lower lows, unable to escape the governing downtrend.
Ripple is in danger of further decline as XRP price is edging closer toward the ascending support trend line that started forming on July 20.
However, XRP price will be able to discover meaningful support at $1.07, where the 50-day Simple Moving Average (SMA), the ascending support trend line, the middle boundary of the prevailing chart pattern, and the 61.8% Fibonacci retracement level meet. Ripple must hold and close above this level to avoid further losses.
The Arms Index (TRIN), an indicator that gauges overall market sentiment suggests that there is slightly higher selling activity than buying activity. This could indicate that bulls could continue struggling to lift prices higher against the overpowering distribution of the sellers.
If selling pressure continues to rise, XRP price may slice below the ascending support trend line, exposing Ripple to additional downside risk, dropping toward the 200-day SMA at $1.02. The token may find a foothold at the 100-day SMA at $0.99, before dropping toward the bearish target given by the governing chart pattern, at the lower boundary of the parallel channel at $0.97.
XRP/USDT daily chart
Further bearish sentiment may incentivize XRP price to slide toward the 50% Fibonacci retracement level at $0.96, then to the September 21 low at $0.85, coinciding with the 38.2% Fibonacci retracement level.
If Ripple bulls manage to reverse the period of underperformance, XRP price will meet its first obstacle at the 21-day SMA at $1.10, then at the upper boundary of the parallel channel at $1.13. The following target for buyers is at the 78.6% Fibonacci retracement level at $1.22. However, investors should note that only a close above the 21-day SMA would signal the token’s resilience from its recent weakness.
XRP Price Looks Solid, Will There be a Significant Upward Surge?
BTC and ETH both reversed direction as they looked for fundamental support, implying that bears are trying to catch over-leveraged bulls. Despite Ripple’s legal battle with US securities regulators, XRP is looking solid. XRP is likely to convert a historic level of resistance into support, paving the stage for a significant surge.
XRP Price Action
On Friday, Ripple’s XRP fell 0.03 percent. Ripple’s XRP concluded the day at $1.08883 after falling 5.04 percent on Thursday. After a rocky start to the day, Ripple’s XRP plummeted to an intraday low of $1.08 in the early afternoon before making a move.
Ripple’s XRP soared to a mid-afternoon intraday high of $1.12, breaking above the 38.2 percent FIB of $1.0659 and the first major support level at $1.0609. Ripple’s XRP dropped to $1.07 levels after failing to break through the first significant resistance level at $1.1400. Ripple’s XRP briefly rose to $1.09 levels late in the day before plunging back into the negative. At the time of writing XRP is trading in red at $1.09.
Ripple vs SEC !! What’s Lies Ahead?
Ripple responded to the SEC’s letter with an explanation for its privilege allegations as well as a redacted version of the three additional documents requested by the defendants for in-camera review in the XRP litigation. Ripple has asked the court to make these records available to the defence, and he has continued to argue against the plaintiff’s “privileged” position.
Once Ripple settles their case, you’ll see now only $XRP take off, but the market as well.
That’s because we’ll finally have some sort of clarity that will be available.
NFA— David Gokhshtein (@davidgokhshtein) October 22, 2021
David Gokhshtein is the founder of the Pac Protocol network and a crypto influencer who often tweets about the crypto world. In the most recent, he discussed the Ripple vs SEC case and how the resolution of the legal struggle between Ripple and the SEC will benefit XRP.
David cited a previous interview with Ripple CEO Brad Garlinghouse, in which he stated that the business will resolve the issue with the US Securities and Exchange Commission (SEC) if the asset class of the Ripple token is clarified.
According to David, if the SEC clarifies whether Ripple’s asset class is a security or not, it will also clarify the status of other crypto assets. And the SEC’s clarity will function as a stimulus for the XRP and cryptocurrency markets to take off.