Trusted

XRP Price Jumps 8% Today As SEC’s Ripple Lawsuit Finally Comes To An End

2 mins
Updated by Harsh Notariya
Join our Trading Community on Telegram

In Brief

  • XRP surged 8% following Ripple's settlement with the SEC, but rising profits for short-term holders (STHs) may limit its ability to breach $2.38 resistance.
  • The MVRV Long Short difference at a 31-month low suggests that short-term holders might realize profits, creating potential selling pressure.
  • XRP needs to break $2.38 resistance and turn it into support for a sustained rally; failure to do so could keep it range-bound between $2.38 and $2.12.
  • promo

XRP has seen significant gains recently, fueled by the end of the years-long Ripple-SEC lawsuit. After reaching a settlement with the SEC, Ripple agreed to pay $50 million of the initially proposed $125 million penalty. 

This news helped push XRP’s price upward. However, despite the positive developments, rising profits for short-term holders (STHs) could threaten the altcoin’s sustained recovery, potentially preventing a breakout above key resistance levels.

XRP Investors Are Sending Bearish Signals

The MVRV Long Short difference, currently at a 31-month low, indicates a rise in short-term holder profits. When this indicator is low, it suggests that STHs, who are typically quick to sell, might book profits. This trend is relatively bearish for the market. 

These holders often sell at the first sign of profits, which could limit XRP’s ability to maintain its current upward trajectory. If many STHs decide to cash out, XRP could struggle to breach key resistance levels and face downward pressure. Additionally, the increasing profits for STHs might create an environment where speculative selling increases, especially if XRP’s price faces any short-term fluctuations.

XRP MVRV Long/Short Difference.
XRP MVRV Long/Short Difference. Source: Santiment

XRP’s overall momentum shows mixed signals. On one hand, the Ichimoku Cloud, a key technical indicator, is currently exhibiting signs of bearishness. This would typically suggest that the market sentiment is leaning toward a downtrend. However, the candlesticks appear to be approaching a potential breakout above the Ichimoku Cloud.

Should the candlesticks successfully break above the Ichimoku Cloud, it would mark a shift in market sentiment. The resulting confirmation of upward movement could provide a foundation for XRP to challenge higher resistance levels.

XRP Ichimoku Cloud
XRP Ichimoku Cloud. Source: TradingView

XRP Price Needs To Breakout

XRP has risen 8% in the last 24 hours, partially due to broader market bullishness and Ripple’s settlement with the SEC. As a result of the settlement, Ripple will pay $50 million of the original $125 million penalty, with the remaining $75 million being returned. This news has boosted XRP’s price, which is currently trading at $2.29.

However, XRP faces significant resistance at $2.38, a level it has struggled to breach for over seven months. If short-term holders move to sell at current prices, XRP could be limited in its ability to break through this resistance. This could keep the altcoin consolidated in a range between $2.38 and $2.12, preventing a breakout.

XRP Price Analysis.
XRP Price Analysis. Source: TradingView

If XRP manages to breach $2.38 and flip it into support, it could trigger a more sustained rally. A move past this level could open the door for a rise to $2.56, invalidating the current bearish-neutral outlook. Such a breakout would signal confidence in the market and potentially pave the way for further gains in the long term.

Top crypto platforms in the US
eToro eToro Explore
Arkham Arkham Explore
Plus500 Plus500 Explore
Moonacy Moonacy Explore
Uphold Uphold Explore
Top crypto platforms in the US
eToro eToro Explore
Arkham Arkham Explore
Plus500 Plus500 Explore
Moonacy Moonacy Explore
Uphold Uphold Explore
Top crypto platforms in the US
eToro eToro
Arkham Arkham
Plus500 Plus500
Moonacy Moonacy
Uphold Uphold

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Frame-2t314.png
Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
READ FULL BIO
Sponsored
Sponsored