XRP has managed to outperform all cryptocurrencies in the top 100 coins by market capitalization, gaining over 67% in the last week alone, but what is behind these bullish waves?
After a long-running consolidation, Ripple (XRP) finally appears to be gaining momentum after months of price action. One of the reasons for this sudden price spike was the possibility of a final verdict and closure of the SEC case against Ripple in the coming days.
Settlement rumors contribute to optimism
Amid rumors of a Ripple and SEC settlement, a motion was granted to give time limits to motions to seal claims that prevent evidence. The final deadline for any third-party sealing motion is December 9 and the deadline for opposing any motion is December 22.
In a recent interview, Ripple CEO Brad Garlinghouse said the Securities and Exchange Commission (SEC) had “lost its way” and was a “hello for cocoa puffs.” Garlinghouse’s statements further paved the way for heightened market expectations.
Apart from the external news strongly affecting investor sentiment, some technical and on-chain indicators also painted a pleasant picture for XRP.
XRP whales back in action
XRP price hovered at $0.536 at press time, recording gains of 27.27% on the 24-hour chart and nearly 67% gains on the weekly price chart.
On-chain data from Santiment showed that active shark and whale addresses holding 1-10 million XRP have accumulated since the end of 2020.
With active whales and sharks adding to their balances, the same paints a healthy long-term trend for XRP, which could provide an additional boost to the price.
That said, the XRP/BTC price ratio reached a one-year high of ₿0.000025, breaking the long-term downward trend the ratio had been following.
The feeling becomes positive
From a technical standpoint, the price of XRP has recovered from resistance at the long-term descending trendline as trading volumes and open interest on futures have seen a significant rise.
The daily RSI noted heavily overbought values indicating strong buying pressure in the market as the bulls dominated. Long-term signals also appeared to turn bullish as the weekly RSI broke out of its own descending resistance line.
Open interest in futures and perpetual markets increased by 65.43% in just 24 hours. On the other hand, $14.1 million of XRP shorts were liquidated after the bullish price action.
In the short-term, looking at the saturated market in the event of a short-term pullback, XRP may revisit the $0.39 support.
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