Investor interest in XRP generates $8.85 billion in market capitalization within a month, but price doesn’t affect
The ongoing legal dispute between Ripple and the Securities Exchange Commission (SEC) has played a factor in the recent rise of XRP to one of the top-performing cryptocurrencies. XRP has demonstrated excellent performance by overcoming significant resistance thresholds and gaining consistent investor attention.
Because of the increased investor interest, XRP’s market capitalization increased by nearly $8.85 billion in just one month. According to data from CoinMarketCap, the token market cap was $26.93 billion as of press time, up approximately 49% from the $18.07 billion reported on March 17.
XRP 30-day market cap chart | Source: CoinMarketCap
Moreover, XRP has finally breached the elusive $0.50 resistance point that has stood unbroken for most of 2023, thanks to the persistent buying pressure.
At $0.52, where it is presently trading, XRP has significantly risen 40% over the past 30 days. On March 29, XRP reached its peak price of $0.57.
XRP 30-day price chart | Source: CoinMarketCap
Recently, XRP’s price unexpectedly increased by 5.8%, which surprised most investors. XRP could not maintain this rally despite the initial euphoria as its price swiftly fell from the $0.5 level and back to its pre-pump price range. XRP is currently trending upward under the direction of the 21-day moving average. Yet, given that it frequently occurs before a market correction, the expanding gap between moving averages is cause for alarm.
Understanding the function of moving averages in spotting patterns and probable market reversals is crucial when examining the movement of the XRP price. Moving averages provide a clearer picture of the price direction of an item by averaging price data over a given period. In the case of XRP, the 21-day moving average has been acting as a support level, helping the digital asset maintain its uptrend.
Right now, XRP is aiming toward the $1 position, but there are several obstacles it must overcome. The $0.6 mark needs to be crossed if XRP continues its upward trend to look toward a potential path into $1.
While everything is going on, TradingView’s technical analysis of XRP is primarily optimistic. The one-day gauges are summarized with a buying attitude at 14. Oscillators are still neutral at 9, while moving averages are for a strong buy at 13.
XRP technical analysis | Source: TradingView
The rising optimism of the token community, which expects a positive resolution in the ongoing legal dispute between Ripple and the SEC, may have contributed to the XRP price increase. This rumor may have contributed to the recent uptick in XRP’s performance. The case’s verdict is believed to be made public in the first half of 2023.
A favorable decision is seen as a potential bullish trigger for XRP. The unsealing of Hinman documents, which provide a view into the SEC’s first classification of securities, has drawn attention. One noteworthy recent development is the legal counsel for Ripple’s response to the letter of supplementary authority from the SEC in support of the request for summary judgment.
Michael K. Kellogg, the attorney for Ripple, submitted a letter arguing that the SEC’s case did not support the company’s fair notice claim in the continuing dispute.
Earlier, the SEC submitted a new argument against Ripple and used the Commonwealth Equity Services case as evidence to support its position that Ripple’s fair notice claim should be rejected and that the SEC should be granted summary judgment. Ripple stated that while the ongoing case included strong evidence, such as records from the SEC and correspondence between the agency and outside parties, the Commonwealth case lacked recent material to sustain its fair notice defense.
In sum, adding more than $8 billion to the market capitalization of XRP in less than a month is a positive development for the asset at this crucial time with the ongoing case.
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