As Ripple’s ongoing legal battle with the SEC keeps traders and investors on edge, the company has recently taken some significant actions that have sparked a surge in trading and whale movements in the XRP market. Additionally, an increase in outflow signals a potential bullish comeback for XRP, fueling bullish hope for an upward push toward the $0.55 mark.
XRP Waits For SEC’s Decision On ETF
After weeks of trading within a narrow range, XRP has entered a consolidation phase, particularly as markets pulled back over the weekend due to the SEC’s decision to delay rulings on multiple ETFs until October. Yet, even amidst the summer slowdown, XRP saw significantly higher trading activity compared to other alternative cryptocurrencies.
Last month, XRP boasted an average transaction volume of $462 million, surpassing its closest competitors, SOL and BNB, which recorded trading volumes of $128 million and $121 million, respectively. This was four times the volume of these next two largest altcoins, indicating a robust market interest in XRP.
Moreover, there has been a surge in XRP’s whale activity as the outflow has spiked over the last 48 hours. A substantial amount of XRP has been withdrawn from Binance; roughly 40.4 million XRP tokens, with an estimated value of $20.36 million, have been transferred to an unidentified location.
One could anticipate that a withdrawal of such scale from a leading exchange would catalyze a bullish increase in the price of XRP. Traditionally, sizable outflows triggered by major holders, commonly known as “whales,” are viewed as a promising indicator of the asset’s bullish outlook.
Is XRP’s Surge Above $0.55 Possible?
Bulls are struggling to send the XRP price above $0.51 to initiate a new surge as sellers dominate below immediate resistance levels. The bears once managed to pull XRP’s price below the $0.50 mark. However, they were unable to maintain this low, as seen by the long tail on the day’s candlestick chart. As of writing, XRP price trades at $0.5011, declining over 1.4% from yesterday’s rate.
Despite this, the bears continue to exert pressure, preventing a strong upward rebound from the $0.50 level. This increases the risk of a further decline. If the price continues to struggle to trade above $0.5-$0.48, the XRP could potentially drop to $0.44.
On the flip side, if the price reverses from its current position and surpasses the 50-day EMA at $0.51, it would indicate that the bulls are staging a recovery. In such a scenario, the price could rise to the upper trend line at $0.54. Overcoming this level would be crucial for signaling the beginning of a new bullish surge, potentially reaching $0.61.