XRP recently saw a 2% daily increase, briefly surpassing $0.54 before stabilizing around $0.53. However, more than just the price is catching investors’ attention. A crucial metric points to a possible bullish rally for XRP.
Declining Exchange Supply Fuels Optimism
A significant factor behind the bullish outlook is the sharp drop in XRP’s supply on exchanges. Santiment reports that only 2.58 million XRP tokens are currently available on trading platforms. This marks the lowest supply level in about seven months.
Fewer tokens available for sale typically suggest that investors are holding onto XRP, rather than selling. This reduction in available supply can alleviate selling pressure, potentially leading to price increases. Analysts have noted these trends, with crypto analyst CRYPTOWZRD observing that XRP’s daily chart appears bullish. He believes that the cryptocurrency might experience further gains in the near future.
Legal Developments Impact XRP’s Price
Additionally, the ongoing legal battle between Ripple and the SEC significantly influences XRP’s price. Recently, Judge Torres ordered Ripple to pay a $125 million fine for violating securities laws. This amount is a substantial reduction from the SEC’s original demand of $2 billion. Ripple’s CEO, Brad Garlinghouse, considers this decision a victory, highlighting the favorable outcome for the company.
Both Ripple and the SEC have until early October to respond to the ruling. The SEC seems inclined to challenge the decision, which adds uncertainty to XRP’s price trajectory. Furthermore, Ripple has requested a delay in the payment, which was originally due on September 6. The SEC has agreed to this delay, complicating the situation further.
Technical Analysis Suggests Potential Growth
Analysts are closely monitoring XRP’s price movements, predicting a significant breakout. A symmetrical triangle pattern has formed, which could lead to a price surge of up to 5,261%. This pattern has been developing since early 2021, following a decline from a high of $1.96.
The immediate resistance level to watch is around $3.5, the all-time high reached in January 2018. In summary, the combination of declining exchange supply and ongoing legal developments creates a potentially bullish environment for XRP. Investors should stay alert for upcoming market reactions.
Read Also: XRP’s Battle at $0.55: Can Key Levels Prevent Further Decline?
