XRP hits 13-month high versus Bitcoin with 35% daily surge — But is a correction inevitable?

4 days ago 16

XRP price posted a crisp rally against Bitcoin (BTC) connected continued optimism astir a imaginable colony betwixt Ripple, a San Francisco-based blockchain outgo firm, and the U.S. Securities and Exchange Commission (SEC).

Settlement rumors substance XRP terms boom 

On Sept. 23, the XRP/BTC brace surged to 0.00002877 — its champion level successful 13 months — from 0.00002132, a 35% terms rally versus Bitcoin successful 1 day. Meanwhile, the aforesaid timeframe saw XRP rising arsenic overmuch arsenic 42% against the U.S. dollar.

XRP/BTC and XRP/USD regular terms chart. Source: TradingView

The large terms leaps successful the XRP marketplace started appearing aft Ripple and SEC filed motions for a summary judgement with the tribunal connected Sept. 12 regarding their ongoing ineligible conflict implicit allegations that Ripple committed securities fraud.

In different words, Ripple and SEC agreed that the tribunal should usage disposable grounds to scope a verdict by December 2022 connected whether the blockchain steadfast illegally raised funds by selling XRP, and frankincense avoiding trial. 

XRP's terms has boomed astir 75% and 60% versus Bitcoin and the dollar, respectively, since Ripple's tribunal filing, fueled by optimism of a imaginable triumph for Ripple.

The buying accelerated further aft Ripple CEO Brad Garlinghouse suggested the aforesaid successful his caller interrogation with Fox Business connected Sep. 22.

— HeadlineHunter!U.S. (@HHunter_US) September 22, 2022

Garlinghouse:

"People recognize that the SEC is truly overreaching and they are not pursuing a faithful allegiance to the instrumentality successful pursuit for an result [...] The SEC has benignant of mislaid its way."

XRP sharks and whales buying since 2020

The terms surge besides comes amid affluent investors consistently accumulating XRP tokens since May.

The percent of entities holding betwixt 1 cardinal and 10 cardinal XRP tokens — known arsenic sharks and whales — has risen arsenic a full to 6.35% connected Sep. 23, 2022, up from 5.43% connected Dec. 31, 2020, according to data from Santiment, which noted: 

"Active shark & whale addresses holding 1m to 10m $XRP person been successful an accumulation signifier since precocious 2020."
Active XRP shark and whale addresses. Source: Santiment

Meanwhile, the fixed play besides witnessed entities with implicit 10 cardinal XRP tokens reaching an all-time debased 70.75% of the existent supply. 

Pain ahead?

It appears that traders person been buying the rumor in the run-up to the Ripple vs. SEC verdict. But portion it remains to beryllium seen if this volition past crook into "sell the news" depending connected the result of the ruling, XRP's technicals are hinting astatine a imaginable correction.

Notably, XRP has already go an overbought plus versus Bitcoin and the dollar.

Related: Total crypto marketplace headdress shows spot adjacent aft the Merge and Federal Reserve complaint hike

The comparative spot scale (RSI) for XRP/BTC reached astir 85 connected Sep. 23, mode supra the overbought threshold of 70 that typically precedes a beardown terms correction oregon consolidation.

XRP/BTC has already corrected by astir 10% from its 13-month peak, arsenic shown successful the illustration below. The brace present tests 0.00002601 arsenic its short-term support, which, if breached to the downside, could person it trial 0.00002079 arsenic its superior downside people oregon a 20% driblet from existent levels by the extremity of the year. 

XRP/BTC regular terms chart. Source: TradingView

Meanwhile, XRP eyes a akin crisp correction versus dollar aft crossing paths with a multi-month descending trendline resistance, arsenic shown below.

XRP/USD three-day terms chart. Source: TradingView

An extended pullback from the trendline absorption could spot XRP trial its near-term horizontal trendline enactment arsenic its adjacent downside target. In different words, the XRP/USD brace could driblet to $0.31 by the extremity of 2022, down astir 40% from today's price.

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.

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