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XRP price falls to Bitcoin (BTC) as optimism continues about a possible settlement between San Francisco-based blockchain payments firm Ripple and the U.S. Securities and Exchange Commission (SEC). showed a sharp rise.
On Sept. 23, the XRP/BTC pair surged from 0.00002132 to a 13-month high of 0.00002877, a 35% one-day gain against Bitcoin. Meanwhile, over the same timeframe, XRP has risen by 42% against the US dollar.
After Ripple and the SEC filed their motions, the XRP market began to show significant gains. Seeking summary judgment with the court on Sept. 12 regarding an ongoing legal battle over allegations that Ripple committed securities fraud.
In other words, Ripple and the SEC will use the evidence available to the court to rule on whether blockchain companies have illegally raised money by selling XRP by December 2022, and the court will continue to do so. agreed to avoid
XRP’s price has surged about 75% and 60% against Bitcoin and the dollar respectively since Ripple’s court filing, fueled by optimism that Ripple could win.
Buying further accelerated after Ripple CEO Brad Garlinghouse hinted the same in a recent interview with Fox Business on Sept. 22.
BREAKING: Ripple CEO @B Girling House Appearing on Fox Business Amid $XRP Price Surge Approaching $0.50
HeadlineHunter!US (@HHunter_US) September 22, 2022
Girling House:
“People are realizing that the SEC has really gone too far and has not been faithful to the law in pursuit of results. […] The SEC got a little lost,” he said.
The price spike has come amid a consistent accumulation of XRP tokens by wealthy investors since May.
The percentage of entities holding 1-10 million XRP tokens (known as sharks and whales) has increased overall from 5.43% on December 31, 2020 to 6.35% on September 23, 2022 . according to Santiment data states:
Active shark and whale addresses holding $1M to $10M XRP have been in an accumulation pattern since late 2020.
Meanwhile, the period also saw entities with over 10 million XRP tokens hit a record low of 70.75% of the current supply.
Traders appear to believe the rumors ahead of the Ripple v. SEC ruling. However, depending on the outcome of the ruling, it remains to be seen if this will “sell the news”, but XRP’s technicals have hinted at a possible fix.
In particular, XRP has already become an overbought asset against Bitcoin and the dollar.
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XRP/BTC’s Relative Strength Index (RSI) reached almost 85 on Sept. 23, well above 70, the overbought threshold that usually precedes a strong price correction or correction.
As you can see in the chart below, XRP/BTC has already corrected nearly 10% from its 13-month peak. The pair is currently testing 0.00002601 as short-term support and if this breaks on the downside, it could test 0.00002079 as the main downside target or drop 20% from current levels before the end of the year.
On the other hand, XRP expects a similar sharp correction against the dollar after crossing months-long resistance of the downtrend line, as shown below.
A prolonged pullback from trendline resistance could cause XRP to test horizontal trendline support in the near future as the next down target. In other words, the XRP/USD pair could fall to $0.31 by the end of 2022, down almost 40% from the September 23rd price.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. All investment and trading movements involve risk. You should do your own research when making a decision.
