New Turn in Ripple Lawsuit Brings Bulls Back to XRP
Key Takeaways
- XRP holders are growing overwhelmingly bullish.
- The sudden change in sentiment is likely related to a new turn that the SEC v. Ripple case has taken.
- Large whales have gone into a buying spree in anticipation of a positive resolution.
A new turn in the SEC v. Ripple case has been enough to lure investors back to XRP.
Speculation Mounts Around XRP
The number of XRP-related posts on different social media networks skyrocketed in Mar. 22. In less than three days, engagement rose by a whopping 309%, according to data from LunarCRUSH.
More importantly, over 80% of all the social interactions were bullish about Ripple’s native token.
The rising chatter is likely related to a new turn in the SEC’s ongoing lawsuit against Ripple.
According to attorney Jeremy Hogan, the U.S. Securities and Exchange Commission unintentionally implied that exchanges that relist and allow trading of XRP would not violate any guidelines. Under Section 4 of the Securities Act, only Ripple and its affiliates could be accused of illegal sales.
Within minutes of the comment, the hashtag “RelistXRP” was trending on Twitter while the number of related posts skyrocketed.
Still, Park Bramhall, senior counsel at Lowenstein Sandler LLP, believes that the SEC was taken out of context. The lawyer explained that only “parties other than Ripple and its affiliates could rely on the exemption from registration.”
Large Whales Are Back
Positive social engagement has also led many large investors to add more XRP to their portfolios.
Santiment’s holder distribution chart shows that the buying pressure behind this cryptocurrency rose dramatically over the past week. The analytics firm recorded a significant spike in the number of addresses with millions of dollars in XRP, colloquially known as “whales.”
Addresses holding more than 10 million XRP tokens have risen by 4.90% since Mar. 15. Roughly 15 new whales have joined the network within such a short period.
The recent increase in the number of large investors behind XRP may seem insignificant at first glance. However, when considering that these whales hold over $5 million in XRP, the sudden spike in buying pressure can translate into millions of dollars.
If the buying spree continues, XRP may have the ability to advance further and reach new yearly highs.
Such a bullish outlook coincides with the creation of an inverse head-and-shoulders pattern on this cryptocurrency’s 4-hour chart.
Although XRP is currently forming the right shoulder of the bullish formation, it can break out of that pattern. A spike in buy orders that sends this altcoin to close above the pattern’s neckline at $0.65 could lead to a 72.50% upswing towards $1.12.
Traders must wait for a 4-hour candlestick close above the $0.65 resistance level for the inverse head-and-shoulders pattern to be validated. Failing to do so could lead to a downswing to the $0.39 support.
If XRP breaks below this critical price hurdle, it will invalidate the bullish outlook and drop towards the next crucial interest area at $0.20.
Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.
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