- XRP is trending within a tight range, an indication of investor consolidation, a precursor of a major price change.
- While the token’s future is uncertain, market experts are confident of a bullish breakout fueled by network development and legal wins.
XRP investors are closely watching the token’s price movement after a prolonged period of consolidation. Data shows that Ripple (XRP) has been hovering around its 20-day average price lately, with neither bulls nor bears taking control, leaving investors uncertain where the price is headed next.
The approval of a Bitcoin spot ETF and Ethereum spot ETF has led to speculation that XRP could be next in line to receive approval from the U.S. SEC. But with Ripple and the SEC entangled in a legal case to determine the status of XRP, experts remain unconvinced that institutions will back the ETF filing and equally if the SEC could approve such a filing.
However, as CNF has reported, Ripple CEO has predicted that the market will welcome an XRP ETF by 2025. This suggests that the CEO believes the case will be settled by the end of this year.
The ongoing case is one of, if not the main reason that XRP is struggling to rally and has failed to keep up with its peers in recent times. Legal experts have relentlessly held the view that Ripple will ultimately win the case, or potentially get a fair and agreeable settlement. With the elections promising new leadership at the White House and the SEC, this remains one of the likeliest outcomes.
At the time of writing, XRP is trading for $0.48 after a massive dip, losing 7% in the last 24 hours. The 8th-ranked coin has plummeted 8% on the weekly chart.
The price change is part of a market-wide pattern initiated by Bitcoin (BTC). The market leader has slipped below the $70,000 psychological position after a 2.5% drop. It remains unclear what has triggered the price drop with most market experts advising smart investors to take advantage of the discount prices to accumulate more coins.
Technical indicators are offering mixed signals on XRP’s price direction. While the Relative Strength Index (RSI) at 50.13 and the Money Flow Index (MFI) at 44.44 suggested consolidation (neither overbought nor oversold), the Chaikin Money Flow (CMF) painted a concerning picture. Sitting at zero and trending down, CMF indicated a potential capital flight from XRP, which could be a bearish sign and precede a price drop.
Trading activity in XRP futures has picked up steam this month. Open interest, a measure of outstanding futures contracts, has jumped 7% to $661 million according to Coinglass data.
As CNF reported earlier this week, whale activity has increased significantly, attracting significant investor interest. According to on-chain data, a little more than 218 million coins were shuffled in about 24 hours. This proves great interest among big investors, casting a bullish long-term outlook.
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