The XRP price has signaled medium-term strength as Bitcoin (BTC) rebounded above $110,000 on Monday. The large-cap altcoin, with a fully diluted valuation of $245 billion, gained almost 3% over the past 24 hours, trading around $2.46 during the mid-North American session on Monday, October 20.
XRP Rebound Signals Medium-Term Bullish Recovery
After today’s recovery in XRP price, buyers are hopeful of further upside potential. In the daily time frame, the Bollinger Bands have formed a potential ‘W’ pattern as the XRP price is hovering around the lower band, indicating oversold.
Notably, XRP’s daily Relative Strength Index (RSI) has formed a bullish divergence amid a possible double bottom. A similar bullish story was noted by Santiment, with both MVRV 30 days and MVRV 365 days indicating that the price of XRP is currently in a bottoming phase.
Source: Santiment
Robust fundamentals weigh on sellers
XRP buyers outweigh sellers
Demand for XRP has been gradually increasing since the official conclusion of the SEC bs Ripple lawsuit. Market data from for example CoinShares shows that XRP’s investment products recorded net weekly cash inflows of $73.8 million, totaling $2.45 billion in assets under management.
Earlier Monday, David Schwartz, former CTO at Ripple, announced that he will become a strategic advisor to the newly formed Evernorth. Notably, Evernorth on Monday announced plans to go public through a merger with Armada Acquisition Corp, which plans to raise $1 billion to invest in XRP.
Meanwhile, on-chain data analysis is from CryptoQuant revealed that Chris Larsen, co-founder of Ripple Labs, sold 50 million XRP worth approximately $120 million on Monday.
Ripple is building XRPL to improve volume and liquidity
Ripple Labs has made strategic acquisitions in recent years to improve XRPL adoption. For example, Ripple has already acquired Hidden Road to enhance its tokenization bid, and recently acquired GTreasury for $1 billion to enhance its corporate treasury operations.
Is now a good time to buy?
Yes. Historically, the XRP price follows Bitcoin in the macro bull market. With Bitcoin price expected to outperform Gold in the coming months, it is safe to assume that XRP price will follow suit, fueled by its robust fundamentals.
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