According to Santiment statistics, the decrease in XRP supply on exchanges indicates a decrease in selling pressure.
As investors consider the decision in the SEC case, Ripple has begun private beta testing of its stablecoin.
Retail traders have been buying XRP after last week's crypto meltdown, while XRP whales have been selling their tokens.
XRP's optimistic scenario calls for a 10% rebound to $0.63 and an extension of gains to $0.57.
Following the conclusion of the Securities and Exchange Commission (SEC) litigation against the business, Ripple (XRP) informed traders of favorable developments in the last week. Recovering from its losses, XRP remained stable above $0.57, a crucial support level, on Tuesday.
Positive developments in the ecosystem, together with on-chain indicators, indicate that the XRP Ledger native coin has bullish potential.
According to Santiment's statistics, the quantity of XRP on exchanges has been declining steadily. The selling pressure on XRP assets decreases as the number of tokens kept on exchange wallets decreases, making fewer tokens available to sell.
If the supply of an exchange is decreasing, it might indicate that the price of an altcoin is about to rise.
XRP
Supply of XRP on exchanges relative to price
Even as Ripple continues gains, huge wallet investors in XRP have sold off their token holdings, while ordinary holders have been buying them up. The data from Santiment illustrates the distribution of XRP supply during the last week.
Technical research: XRP targets 20% increase
The daily chart of XRP/USDT shows that Ripple has been on a declining trend for some months. XRP continues to rise on Tuesday, reaching a new high of $0.5744 as this is being written. If XRP continues to rise, it may reach the $0.63 mark, an increase of 10.21%.
Important for XRP is the $0.63 mark, while the cryptocurrency encounters hurdles at the psychologically significant $0.60 mark. With an RSI of 52, the XRP price movement is showing signs of strong momentum.
In the event of a negative situation, XRP may encounter support inside the Fair Value Gap (FVG) that extends from $0.5888 to $0.5785.