Ripple’s digital asset, XRP, continues to exhibit resilience, staying above the $0.60 mark in the current week. The sustained upward trend is notably fueled by increased institutional capital flowing into XRP funds. Will the XRP price test $1 amid current optimism? Saqib Iqbal, a financial markets analyst at Trading.Biz, analyzes the fundamental and technical factors to forecast the XRP price.
-
XRP price remains in positive territory amid institutional inflows.
-
The SEC vs Ripple case is in final stages and may provide impetus to the coin to post meaningful recovery.
-
The technical picture is not yet flowery for the coin and needs more bullish momentum to push north.
Recent data from CoinShares underscores this positive trajectory, indicating a recent inflow of approximately $0.5 million in the last few days and contributing to a net gain of $13 million for 2023. The prevailing bullish sentiment distinguishes XRP as an institution-supported asset, setting it apart from other lagging altcoins experiencing outflows.
While some significant whale-wallet investors in XRP tokens have distributed their reserves, there has been a simultaneous influx of institutional capital into XRP funds. This phenomenon is observed across various whale segment groups, particularly those holding between 100,000 and 10 million tokens. Concurrently, retail traders with holdings ranging from 50,000 to 500,000 XRP are actively accumulating the altcoin, further amplifying the optimistic sentiment.
A comprehensive analysis using the Market Value to Realized Value (MVRV) ratio by Santiment data reveals that the current MVRV ratio for the last 30 days stands at -0.97. This suggests potential losses for those who acquired XRP in the past month, especially if sold at the current price of $0.62. However, the data indicates a reduced selling inclination among traders, providing an opportunity for the continued upward movement of the altcoin.
On November 30, 2023, the United States Securities and Exchange Commission (SEC) is set to convene a closed-door meeting to address crucial matters related to the settlement of injunctions and other administrative processes. This meeting holds significance for the XRP community, which is currently navigating through Ripple’s prolonged legal battle with the SEC.
The SEC versus Ripple lawsuit is in its final stages following a summary judgment decision. In its July ruling, the court clarified that most Ripple transactions do not constitute securities. However, it deemed the issuance of XRP and the sale of the company’s products to institutions as investment contracts. In the ongoing Remedies phase, the penalties Ripple may face for its illegal sale of XRP to institutions will be determined.
While the court is expected to issue a ruling by the summer of 2024, there are indications that the SEC might promptly appeal the remedies proceeding against Ripple’s programmatic sale of XRP. Nevertheless, with the imminent SEC conference focusing on settlements, a resolution to Ripple’s legal challenges may be on the horizon.
