XRP oscillated near the $0.548 level after significant upticks in Sunday’s trading session.
Interestingly, XRP hasn’t closed over $0.55 since October 1, the day before the SEC filed an appeal against Ripple.
According to Santiment data, addresses holding 100 million to 1 billion XRP have amassed over 140 million tokens, worth $77 million.
Due to this increasing holding, there are now roughly 10 billion XRP in these large addresses.
The token has since stabilized amid the recent cool-off in the crypto market. Analysts credit notable trends in whale accumulation for their optimistic outlook on XRP’s comeback.
The fact that XRP’s funding rate is currently positive signals that a price increase is likely. Long-term investors may profit if this trend continues, as the price may approach higher resistance levels.
The Relative Strength Index (RSI) currently has a reading of 44, suggesting bearish momentum, but it is approaching oversold territory, indicating an impending rebound. The 50-day Exponential Moving Average (EMA) of $0.553 serves as dynamic resistance, limiting upward movement for the time being.
A clear breakout above $0.55 could result in more positive momentum, with gains potentially extending to higher resistance levels. Given the technical indicators and ongoing price consolidation, traders will be watching for a potential breakout opportunity.
Ripple’s RLUSD Stablecoin: A Long-Term Growth Driver?
The forthcoming launch of Ripple’s stablecoin, RLUSD, is a significant move that will impact the ecosystem. RLUSD will be supported on the XRP Ledger (XRPL) and Ethereum, with a 1:1 peg to the US dollar. While stablecoins are typically used for value transfers rather than speculative investments, Ripple’s collaborations with Bitstamp and MoonPay may increase liquidity and drive demand for XRP.
Market experts note that RLUSD’s success will be determined by its acceptance among retail and institutional users. Although the immediate influence of the stablecoin on XRP’s price may be limited, its launch is a strategic step to enhance Ripple’s image and strengthen its foothold in the broader crypto community.
Market fundamentals highlight XRP’s challenges, including the uncertainty surrounding the outcome of the SEC appeal. The token posted an 18% drop earlier this month amid legal issues with the U.S. Securities and Exchange Commission (SEC).
If the 2nd Circuit rejects the SEC’s Form C for being late, XRP may replicate the July 2023 rally to $0.93. Conversely, if the SEC presents compelling reasons to contest the programmatic sales decision, XRP could fall below $0.50.
Fears that the court would dismiss the SEC’s appeal caused XRP to drop to $0.5668 before reversing course. If the SEC successfully overturns the programmatic sales ruling, U.S. cryptocurrency exchanges may delist XRP to avoid violating U.S. securities laws. This would likely affect adoption and buyer demand. An SEC victory could have far-reaching consequences for ongoing crypto lawsuits, such as those involving Coinbase and Binance.
However, increased expectations of a November Fed rate decrease and a soft landing for the U.S. economy have boosted BTC demand. On Monday, October 21, investors should monitor the U.S. economic calendar, as statements from FOMC members may impact perceptions regarding the Fed’s rate path and the cryptocurrency market.
