Rising buying interest fails to hold XRP as declines to $0.31 linger
|- XRP price bottom remains elusive despite rising investor interest.
- XRP price may take off if Ripple Labs wins its case against the SEC.
- The cross-border money transfer token eyes an extended dip to $0.3100 before recovery ensues.
XRP price is flaunting a weak recovery move against a backdrop of up to 8% losses over the last 48 hours. The international money transfer token started giving up its gains after running into intense resistance at around $0.3600.
XRP price eyes pullback to $0.31 before reversing the trend
XRP teeters at $0.3300 at the time of writing, while bulls aggressively deal with resistance at $0.3400 – reinforced by the 50-day (yellow) Simple Moving Average (SMA). The rejection from $0.3600 saw the token lose up to 8% of its value but slowed down the downtrend at $0.3306.
A bearish signal from the Directional Movement Index (DMI) may render the push for an immediate trend reversal unsuccessful. Odds favored the downtrend’s continuation as the index’s –DI crossed above the +DI. Traders looking forward to shorting XRP price should closely watch the gap between these two signal lines to confirm increasing overhead pressure.
XRP/USD daily chart
As XRP price falls, it is expected to keep collecting liquidity. According to the Supply Distribution metric by Santiment, XRP holders have not stopped the quest to fill their bags since May 2022.
Read more: Ripple price slides as XRP traders get a harsh lesson on economics
Addresses holding between 10,000 and 100,000 tokens soared to 181,000 from approximately 158,000 – recorded on May 9. Similar growth occurred among addresses with tokens between 100,000 and 1 million, from 22,900 to roughly 25,900. Subsequently, the cohort of addresses holding between 1 million to 10 million tokens grew to 1,436 from 1,298 in the same period.
XRP Supply Distribution
Investor interest has been upward based on the data presented above. However, due to other external market forces, XRP price has remained suppressed – with minor rebounds and frequent dips. In normal market conditions, growing demand has a direct positive impact on cryptocurrency prices.
When will XRP price takeoff?
David Gokhshtein, the founder of Gokhshtein media and a former United States Congress candidate, shared his expectations of XRP price via Twitter on Thursday. He reckoned that if Ripple Labs, the company that issues XRP tokens, wins its lawsuit against the Securities and Exchange Commission (SEC), XRP price will rally. He added that such a development would positively impact “every legitimate platform as well.”
Ripple Labs has been battling the SEC in court since December 2020, when the regulator filed a case alleging that the blockchain company sold unregistered security tokens. Last week, FXStreet reported a possible settlement window between the two parties to settle within, but that’s not until November. Besides, the lawsuit may spill into 2023 if a settlement option is not on the table.
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