Is XRP price primed for a recovery as the lawsuit against the US SEC draws nearer?
Ripple & US Securities & Exchange Commission have filed motions for summary judgment.This indicates that the long drawn lawsuit might be nearing the end which could prove to be a positive trigger for XRP price which has been stagnant for a very long time.
- Ripple & US Securities & Exchange Commission have filed motions for summary judgment.
- This indicates that the long drawn lawsuit might be nearing the end.
- An end to the lawsuit could prove to be a positive trigger for XRP price which has been stagnant for a very long time.
Ripple is a blockchain-based digital payment network and remittance system much similar SWIFT system for cross-border payments. The platform is empowered by its native token XRP which is used to transfer funds. XRP token is pre-mined and a group of bank-owned servers confirm the transactions. The platform has collaborated with many entities to serve the underbanked people.
Recently, Ripple is facing a lawsuit filed by the SEC that claims XRP to be a security and that the company has sold the asset illegally over so many years. As a result, the US-based crypto exchanges delisted the token. However, the lawsuit is expected to find a closure that may positively impact the XRP price.
Recent Updates on Ripple:
- Ripple announced the agenda for the upcoming Ripple Swell event where many influential personalities are invited as speakers
The #RippleSwell Global 2022 agenda is now live! Sessions will cover cross-border payments, crypto liquidity, tokenization, crypto regulation and more. Request your invitation to join us for this exclusive event on November 16-17. https://t.co/DFhAkOTJuD pic.twitter.com/G3YjkeyseF
— Ripple (@Ripple) October 13, 2022
- Ripple continues with its European expansion by partnering with Lemon Way, a payment solution
Welcoming two new ODL partners today! @LemonWay as our first ODL partner in France & Xbaht as our first ODL partner in Sweden! 🇫🇷🇸🇪
Together, we’re making it easier for consumers and businesses in these regions to make real-time payments around the world. https://t.co/WOFgR3D0IP
— Ripple (@Ripple) October 11, 2022
Technical Analysis of Ripple(XRP)
- The XRP price consolidated at the bottoms for nearly a couple of months and presently undergoing a parabolic recovery to reach the neckline of the curve.
- Meanwhile, due to the latest price action, the XRP price is trading within a bullish flag pattern, consolidating along the lower support.
- The price may experience a significant upswing of almost 20% to reach the flag’s upper resistance if it bounces back strongly. This could be followed by a breakout to $0.7.
- In the following 30 to 45 days, the bulls may gain momentum and push the price up to $0.9, close to the neckline, before eventually testing $1.
Read more on XRP Technical Analysis
Dipping Daily Transaction Count
The daily transaction count is nothing but the number of confirmed transactions on the network. This indicates the value of the network as a way to securely transfer funds without third-party interference. The top 2 cryptos along with USDT share a huge transaction count almost every new day. Meanwhile, Ripple also records a huge amount of transaction count which had surpassed the top cryptos a couple of times before.
The XRP’s transaction count has been declining since the beginning of the year as the prices failed to gain the required bullish momentum. However, the token registered a couple of spikes in mid of 2022 with the transaction count reaching as high as 121.6K per day. Presently, the count has dropped to 30K but still carries the possibility to surge in the coming days.
Additional Read: XRP Price Prediction
A rising MVRV-Z Score!
MVRV or Market value to Realized value is a ratio that compares the two metrics to determine whether the token is overvalued or undervalued. The MVRV-Z score is simply the difference between the two. While the NVT or Network to Value transaction ratio describes the relationship between transfer volume & market capitalization.
Presently, both the on-chain metrics have dropped significantly. The plunged NVT ratio indicates either the network is experiencing higher transactions or the market capitalization is decreasing faster than the transaction rate. Conversely, the threshold of the MVRV-Z score is 0 and if the ratio drops below these levels, then the price is undervalued & may bounce back soon.
Ripple in recent times is displaying significant strength and hence is expected to coil up, maintaining a notable upswing. Meanwhile, the technicals & the on-chain metrics both point towards a bullish rally fast approaching. Therefore, a closure to the Ripple SEC lawsuit in the favour of the company may eventually impact the XRP price which may decouple from the market conditions and propel high.
Prices as on 18 October, 2022.
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