As Ripple’s ongoing legal battle with the SEC keeps traders and investors on edge, the company recently took some significant action that has sparked a wave of trading and whaling movements in the XRP market. Furthermore, an increase in outflows signals a potential bullish comeback for XRP, fueling bullish hopes for upside momentum towards the USD 0.55 mark.
XRP awaits SEC decision on ETF
After weeks of narrow range trading, XRP has entered a consolidation phase, especially as markets pulled back over the weekend due to the SEC’s decision to delay statements on multiple ETFs until October. Still, even in the midst of the summer slowdown, XRP saw significantly higher trading activity compared to other alternative cryptocurrencies.
Last month, XRP had an average transaction volume of $462 million, surpassing its closest competitors, SOL and BNB, which recorded trading volumes of $128 million and $121 million, respectively. This was four times the volume of these next two largest altcoins, indicating robust market interest in XRP.
In addition, there has been a surge in XRP whale activity as outflows have increased sharply over the past 48 hours. A significant amount of XRP has been withdrawn from Binance; Approximately 40.4 million XRP tokens, with an estimated value of $20.36 million, have been transferred to an unknown location.
You might expect that a pullback of this magnitude from a leading exchange would catalyze a bullish rise in the price of XRP. Traditionally, significant outflows caused by large investors, known as whales, have been seen as a promising indicator of the asset’s bullish outlook.
Is XRP Rising Above USD 0.55 Possible?
Bulls are struggling to push XRP price above USD 0.51 to initiate a fresh increase as sellers dominate below the immediate resistance levels. The bears once managed to get the price of XRP below the $0.50 mark. However, they were unable to maintain this low level as evidenced by the long tail on that day’s candlestick chart. At the time of writing, XRP price is trading at USD 0.5011, down more than 1.4% from yesterday’s price.
Despite this, the bears continue to put pressure preventing a strong upside recovery from the $0.50 level. This increases the risk of a further decline. If the price continues to struggle to trade above $0.5-$0.48, XRP could potentially drop towards $0.44.
On the other hand, if the price reverses from its current position and surpasses the 50-day EMA at $0.51, it would indicate that the bulls are recovering. In such a scenario, the price could rise towards the upper USD 0.54 trendline. Overcoming this level would be crucial in signaling the start of a new bullish wave, which could potentially reach USD 0.61.