XRP Hits 13-Month High Against Bitcoin, Rises 35% Daily


Price from XRP recorded a strong rally against Bitcoin (BTC) for continued optimism about a possible deal between San Francisco-based blockchain payments company Ripple and the United States Securities and Exchange Commission (SEC).

Liquidation Rumors Fuel XRP Price Rise

September 23, The XRP/BTC pair rose to 0.00002877, a 13-month high, from 0.00002132, a 35% price rally against Bitcoin in one day. Meanwhile, during the same period, XRP increased by as much as 42 percent. against the US dollar.

Daily price chart of XRP/BTC and XRP/USD pair. Source: TradingView

Big price jumps in the XRP market started to appear after that Ripple and the SEC will make moves September 12 for a summary trial in court in their ongoing legal battle over allegations of securities fraud by Ripple.

In other words, Ripple and the SEC agreed that the court should use available evidence to rule on whether the blockchain company illegally raised funds by selling XRP until 2022. in December, thereby avoiding trial.

The price of XRP against bitcoin and the dollar has risen by roughly 75% and 60%, respectively, since Ripple went to court, fueled by optimism about Ripple’s possible victory.

The buying sped up even more after Ripple CEO Brad Garlinghouse suggested the same in a recent interview on Fox Business on September 22.

Garlinghouse:

“People are realizing that the SEC is really overstepping their bounds and not staying true to the law in order to get a result.” […] The SEC is lost.

Sharks and whales have been buying XRP since 2020

Prices are also rising as wealthy investors have been steadily hoarding XRP tokens since May.

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Entities with from 1 mln. up to 10 million The percentage of XRP tokens known as sharks and whales has increased to 6.35% in 2022. on September 23, compared to 5.43% in 2020. December 31 according to Sentiment data marked with:

“Active shark and whale addresses worth between $1 million and $10 million.” USD XRP, accumulating since 2020 the end

Active XRP shark and whale addresses. Source: Santiment

Currently, the period also saw entities holding more than 10 million XRP tokens reach an all-time low of 70.75% of the current supply.

Pain in the front?

It seems that the traders were buying into the rumor until Ripple’s verdict against the SEC. However, while it remains to be seen whether this will become “sell news” depending on the outcome of the error, XRP’s technical data hints at a possible fix.

In particular, XRP has already become an overbought asset against Bitcoin and the dollar.

XRP/BTC Relative Strength Index (RSI) September 23 reached near 85, well above the 70 overbought mark that usually precedes a strong price correction or consolidation.

The XRP/BTC pair has already corrected almost 10% from its 13-month high as shown in the chart below.. The pair is currently testing 0.00002601 as its short-term support, a break below which could see its main target at 0.00002079 or 20% from current levels until the end of the year.

XRP/BTC daily price chart. Source: TradingView

Meanwhile, XRP is seeing a similarly strong correction against the dollar after months of bearish trendline resistance, as shown below.

XRP/USD three-day price chart. Source: TradingView

After a long pullback from trendline resistance, XRP may test short-term horizontal trendline support as another downside target. In other words, the XRP/USD pair until 2022 could fall to $0.31 by the end of the year, which would be nearly 40% since September 23.

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Source: es.cointelegraph.com

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