Active shark and whale addresses with 1 million to 10 million XRP have formed a hoarding pattern, suggesting a healthy long-term trend. The price of XRP rebounded from long-term bearish trendline resistance while trading volumes rose considerably, indicating an imminent bullish trend.
Over the last week, Ripple (XRP) outperformed all the top 100 cryptocurrencies by market capitalization by over 67%.
Following a long-lasting consolidation, XRP seems to have gained momentum as it rebounds from previous battered price action. A possible final verdict and closure of the case between the SEC and Ripple is a reason behind that sudden increase in price.
Some Liquidation Elements Drive the Price of XRP Higher
The Court has granted the terms of motions to seal the requests preventing evidence amid rumors of a settlement between Ripple and the SEC. The deadline to close any of those motions is December 9th, while that for opposing any of them is December 22nd.
Brad Garlinghouse, the CEO of Ripple, recently said the US Securities and Exchange Commission (SEC) had lost its way. His remarks paved the way further to raise expectations about the market.
Besides the external news heavily influencing investor sentiment, some on-chain technical data and indicators indicate an optimistic outlook for XRP.
The XRP Whales and Sharks Come Back into Action
XRP is trading at around USD 0.4907 and has accumulated a 12.9% gain over the last 24 hours. While its daily trading volume is above USD 6.62 billion, its market capitalization is about USD 24.34 billion, according to CoinGecko.
According to Santiment, active shark and whale addresses with 1 million to 10 million XRP have formed a hoarding pattern since late 2020.
Those active whales and sharks adding to their balances represent a healthy long-term trend for XRP, giving the price additional momentum.
The XRP/BTC price ratio reached a one-year high of 0.000025 BTC, breaking the long-term bearish trend preceding the report.
The Trend in the Price of XRP Changes to the Upside
Technical analysis indicates that the price of XRP rebounded from long-term bearish trendline resistance. Meanwhile, trading volumes and open interest in futures contracts rose considerably.
The daily relative strength index (RSI) recorded overbought values, indicating high buying pressure as the bulls dominated. Since the weekly RSI metric broke out of its descending resistance line, long-term signals also seemed bullish.
Within only 24 hours, open interest in the futures and perpetual markets rose by 65.43%. Meanwhile, there was a liquidation of USD 14.1 million worth of short XRP following the bullish price action.
The price of XRP may soon retest the USD 0.39 support in a saturated market if a short-term pullback occurs.
Investors should research ADA or any other crypto assets before buying it to know its all-time high, behavior, and possible future price. That will help them find the most convenient investment opportunity to minimize the risk of losing money.
By Alexander Salazar