The XRP Price and Factors Influencing It
The price of XRP has remained relatively stable due to the ongoing legal battle with the US Securities and Exchange Commission (SEC) and Ripple. However, there are other factors that could impact the price, including the possibility of an exchange-traded fund (ETF) for XRP. Rippleโs CEO, Brad Garlinghouse, has shown openness to this idea, which could have a positive effect on the assetโs price. Additionally, significant on-chain transactions involving XRP have emerged, potentially affecting its overall trajectory.
Unlocking of 400 Million XRP from Ripple Escrow
On February 25, Whale Alert data revealed that 400 million XRP (approximately $217.5 million) was unlocked from escrow at Ripple. Itโs important to note that Ripple follows a monthly escrow process where one billion XRP is released, with a portion being sold. Currently, Ripple holds around 40 billion XRP tokens from escrow, which will be released over the next 42 months. This scheduled release increases the circulating supply of XRP and can potentially put downward pressure on its price, especially when combined with Rippleโs practice of selling a portion of these tokens.
XRP Price Prediction
Crypto analyst Alan Santana revisited his earlier assumption about XRP in a TradingView post on February 24. He had previously believed that XRP would not experience as severe a correction as other cryptocurrencies due to its correction over the past six months. However, he admitted that his expectation was proven inaccurate.
Santana identified a significant up-trend line on the XRP chart based on candle closes since 2020. He emphasized that if this trendline is broken, it could have severe consequences for XRP and potentially signal a bearish trend. Santana also highlighted the rejection at key Exponential Moving Averages (EMAs) โ EMA10, EMA21, and EMA50 โ on a weekly basis. While XRP moved above these levels last week, a rejection this week is considered a failed signal, with Santana noting that such a rejection holds twice the significance of a normal signal.
Santana adopted a bearish perspective, suggesting a potential 35% drop in the XRP price. He also cautioned that the situation could worsen.
XRP Price Analysis
Currently, XRP is trading at $0.55, with daily losses of less than 0.1%. On the weekly chart, XRP has declined by over 2%. In terms of technical indicators, bullish sentiments prevail for XRP. One-day gauges from TradingView show a โbuyโ sentiment at 10, while moving averages indicate a โbuyโ sentiment at 8. Oscillators suggest a โneutralโ stance at 8.
In addition to general market sentiments, the outcome of the ongoing legal case between Ripple and the SEC is likely to impact the prospects of XRP. The legal proceedings have moved beyond the discovery stage, and both parties are working on their remedies-related briefs. Key upcoming deadlines include March 13 for the SEC to file remedies-related briefs, April 12 as the deadline to submit motions opposing remedies proposals, and April 29 as the final deadline for remedies submissions.
Hot Take: What Does This Mean for XRP Investors?
As an XRP investor or enthusiast, itโs crucial to stay informed about the factors influencing its price and potential future outcomes:
- The ongoing legal battle with the SEC poses uncertainty for XRPโs price.
- The possibility of an XRP ETF, if approved, could have a positive impact on the assetโs price.
- Significant on-chain transactions, such as the unlocking of XRP from Rippleโs escrow, can affect its overall trajectory.
- An analyst has predicted a potential 35% drop in XRPโs price, highlighting bearish signals on the charts.
- Technical indicators currently suggest bullish sentiments for XRP.
- The outcome of the legal case between Ripple and the SEC will play a significant role in shaping XRPโs future.
Considering these factors, itโs essential to closely monitor developments and make informed decisions based on your risk tolerance and investment strategy. Keep an eye on upcoming deadlines and news related to the legal proceedings to stay ahead of potential market movements.
Fin Boldom has emerged as a notable crypto analyst, accomplished researcher, and adept editor, leaving a distinct mark in the field of cryptocurrency. As a skilled crypto analyst and researcher, Fin’s insights delve deep into the complexities of digital assets, resonating with a diverse audience. His analytical acumen is seamlessly complemented by his editorial finesse, enabling him to distill intricate crypto information into easily comprehensible content