As an analyst with over two decades of experience in the financial markets, I have seen my fair share of regulatory battles and market fluctuations. The recent decision by the SEC to appeal against the court ruling regarding XRP has certainly stirred up the crypto community, and for good reason.
The recent move by the Securities and Exchange Commission to challenge the court’s decision classifying XRP sales as non-securities on exchanges may be causing price fluctuations in XRP.
The well-known “Rzn” digital wallet has transferred approximately 30.38 million XRP, equivalent to around $15.99 million, to Bitso. Additionally, it moved about 19.22 million XRP, worth around $10.12 million, to Bitstamp. Earlier today, a large investor (often referred to as a “whale”) transferred 104.38 million XRP from an anonymous wallet to a new anonymous wallet. These transactions have sparked concern among XRP users, as some speculate the transfers could indicate investors are selling off the token due to the recent SEC appeal filing.
Even though whale actions may not immediately cause significant price fluctuations (as they might be engaging in activities such as staking, trading, or repositioning their assets), the fact that these whale moves occurred at specific times has sparked discussions about potential upcoming sell-offs.
Lawyer Bill Morgan voiced worries for the XRP community, stating they’ve had bad luck. The Securities and Exchange Commission (SEC) filed a lawsuit against Ripple right as the last cryptocurrency market surge was starting. He pointed out that, with a new bull run on the horizon, the SEC has now appealed a court decision beneficial to XRP, potentially causing more uncertainty and price drops, which could again limit the community’s potential profits during market growth.
1) Over a span of three days, from Monday to Thursday, the value of XRP dropped by more than 20%. In just the last day, the trading volume has shrunk by over 50%, indicating a pessimistic outlook on the coin. However, some analysts who specialize in XRP maintain a positive perspective.
Analysts Remain Optimistic despite Recent Price Dip
A well-known cryptocurrency expert known as Crypto Mike, who has more than 15,000 followers on his platform X, recently shared that the XRP price does not currently indicate a bearish trend. Instead, the token’s value remains within an extended uptrend pattern called an ascending triangle, which has been ongoing for several months.
According to a chart shared by “Crypto Mike”, the value of XRP has been forming an ascending triangle for quite some time now. This pattern is marked by a sequence of lower highs and a steady resistance point hovering around $0.60-$0.63. If this resistance level is broken at approximately $0.63, it might trigger a significant increase in the price of XRP.
The Securities and Exchange Commission (SEC) hasn’t submitted Form C to the Second Circuit Court yet, which means we don’t have all the details about their appeal. There are whispers that Ripple might counter-appeal as well. So, it’s premature to predict XRP‘s future price trends. However, it’s reasonable to speculate that the outcome of the appeal could potentially impact XRP’s short-term price fluctuations.
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2024-10-04 18:33