Ripple saw a 2.97% price gain as it retraced towards $0.58, more likely expecting bulls to come in.
The price surge seen earlier this week was driven by Greyscale’s trust offerings.
On Tuesday, September 17, Ripple’s XRP experienced a sharp 2.97% price spike, gaining over 2.98% in market capitalization as it retraced toward $0.58.XRP, which had been performing well earlier in the week. It saw traders opting to “sit and watch” instead of placing new bullish bets.
The price surge seen earlier in the week was driven by positive macroeconomic indicators and the news that Grayscale had added XRP to its cryptocurrency trust offerings. These factors led to a 12.63% gain, with the price hitting $0.60. However, after reaching this peak, buying pressure eased, and bears took over, pushing the price down to $0.56.
( Source:TradingView)
The simple moving average is at $0.579 which lies below the current trading price, expecting a near-bullish breakout. The 1st key resistance level at $0.588 and the second resistance level at $0.5956 are indicated. XRP’s price finds support at $0.578 and $0.568 below which if it hits could indicate an extreme downward trend. The RSI indicator stands at 61.48 indicating an incline towards the overbrought range.
A significant indicator of bearish sentiment is the $31 million in leveraged short positions placed by traders, outpacing the $21.89M in long positions. This suggests that many traders are betting on a potential price drop, particularly if the Fed’s decision doesn’t meet market expectations.
SEC Case and Whale Activity on XRP’s Bullish Outlook
The SEC’s ongoing case against Ripple continues to weigh heavily on XRP’s price movements. Ripple’s Chief Legal Officer, Stuart Alderoty, added to the speculation by stating that while Ripple’s case may be over, the SEC’s stance on crypto regulation is still a major factor for the broader industry.
On September 16, Whale Alert reported a significant transfer of 50 million XRP. It was worth $29.12M, by a wallet associated with Ripple co-founder Chris Larsen. The transfer was made to an unknown wallet. The wallet involved has been part of the XRP Ledger (XRPL) since its early days. It has been funded with 500M XRP back in 2013.
While there are signs of bullish sentiment, key risks remain, particularly around the Federal Reserve’s rate decision and the potential outcome of the SEC vs. Ripple case. Investors should stay informed and be cautious of the evolving situation.
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