XRP price recovery likely in the cards as market participants scoop up Ripple despite whale distribution
|- XRP price has suffered 6% weekly decline as SEC lawsuit drags on, market participants await possible settlement.
- Ripple’s large wallet holders shed their XRP, while retail traders scooped up the asset in the last three months.
- Ripple and SEC could settle the lawsuit in a closed door meeting scheduled for November 30.
XRP price observed 6% weekly losses as the altcoin suffered a correction. The US Securities and Exchange Commission’s (SEC) lawsuit against payment giant, Ripple, dragged on. News of a closed doors meeting between the two parties on November 30 has fueled speculation of a settlement between the two parties.
XRP price is $0.6105 at the time of writing.
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Daily Digest Market Movers: Ripple could settle lawsuit with SEC, retail traders scoop up XRP tokens
- XRP price is $0.6105 on Thursday; the altcoin’s price is unchanged in the past day. XRPLedger’s native token noted 6% losses last week.
- The altcoin is likely to recover from the recent correction if the crossborder payment remittance firm, Ripple, settles with the US SEC.
- News of a closed-door meeting between the two parties has fueled speculation of a possible settlement of the financial regulator’s lawsuit against Ripple.
- According to the SEC website, the subject of the closed meeting will be institution and settlement of injunctive actions, institution and settlement of administrative proceedings, resolution of litigation claims, and matters related to litigation, examinations and enforcement proceedings.
- Pro-XRP attorney John Deaton told his 306,600 followers that in the event of a settlement, the odds are 90-10 in favor of Ripple. Deaton argues that Ripple could end up paying $20 million or less, a 99.9% legal victory for the firm.
- Negotiations are likely to be complex and difficult as the pivotal point of contention is the $770 million fine imposed on Ripple by the US SEC.
- Ripple’s large wallet investors distributed their XRP holdings over the past three months, while retail traders accumulated, based on Santiment data.
- XRP holders with 100,000 to 1,000,000 and 1 million to 10 million tokens, shed their holdings and retail traders consistently added XRP to their portfolio.
XRP token distribution by whales
Technical analysis: XRP price eyes recovery
XRP price could recover from its recent pullback and target the 50% retracement of the decline from the July 13 top of $0.9371 to the Aug 17 low of $0.4235. XRP price could therefore rally towards $0.6809, marking 11.7% rally from the current price.
XRP/USDT 1-day chart
A daily candlestick close below the 50-day Exponential Moving Average (EMA) at $0.5918, could invalidate the bullish thesis.
Cryptocurrency prices FAQs
How do new token launches or listings affect cryptocurrency prices?
Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
How do hacks affect cryptocurrency prices?
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
How do macroeconomic releases and events affect cryptocurrency prices?
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
How do major crypto upgrades like halvings, hard forks affect cryptocurrency prices?
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.
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