TL;DR
- XRP’s price saw a slight increase in the past 24 hours and a declining supply on exchanges suggests a further uptrend.
- The ongoing legal battle between Ripple and the SEC could impact the asset’s price as both sides consider their next steps ahead of an October deadline.
XRP Might be Gearing up for a Rally
Ripple’s XRP has followed the overall resurgence of the cryptocurrency market, witnessing a mild price increase of 2% on a daily scale. It briefly surpassed $0.54 several hours ago before settling at the current $0.53 (per CoinGecko’s data).
One important indicator, though, suggests that a more serious uptrend could be in the cards. This is the XRP supply on exchanges, which has tumbled significantly. According to Santiment, 2.58 XRP million tokens are currently held on trading venues, the lowest mark in approximately seven months.
The declining supply on exchanges typically hints that fewer assets are available for immediate sale, with a rising share of investors preferring to hold their stash via self-custody methods. The reduced immediate selling pressure, in turn, could be viewed as a bullish factor for the price of XRP.
Many analysts are also optimistic that the asset’s valuation will head north soon. X user CRYPTOWZRD claimed that XRP’s daily chart closure was bullish, outlining potential further gains soon. “I will be tracking the intraday chart formation tomorrow to get the next trade,” they added.
Other analysts predicting good days ahead for XRP include Crypto Bitlord and Mando CT. The former called the asset undervalued, setting a somewhat ridiculous target of $27. Mando CT – who is known as a strong supporter of Bitcoin (BTC) – argued there is a clear bullish divergence, promising to accumulate as many XRP tokens as possible.
Awaiting for Ripple v. SEC Developments
One important factor that could trigger additional volatility for XRP’s price is the outcome of the legal battle between Ripple and the US Securities and Exchange Commission (SEC). Last month, Judge Torres ordered the company to pay a $125 million fine for violating certain securities laws.
The amount represents a 94% deduction on the regulator’s initial demand for $2 billion, which caused many (including Ripple’s CEO Brad Garlinghouse) to declare the decision a victory.
Both parties have until early October to contend with the ruling, as the SEC seems more inclined to do so. Earlier this month, Ripple filed a motion requesting a stay on the monetary portion of the Court’s Judgment, which was entered in August. The firm’s lawyers revealed that the regulator agreed with the proposed terms and delayed the payment (which was due on September 6).
Some X users suggested the move could be a precursor of an appeal from the SEC. The American lawyer Fred Rispoli, for example, said:
“Going through all this effort with establishing a trust for the funds boosts chances of an appeal IMO. But ultimately, this is just the safest play for SEC to buy time until the Oct. 7 deadline to appeal.”
It will be interesting to see how the case will fold out in the following months and whether it will have a significant impact on XRP’s price. Historically, major developments surrounding the lawsuit have triggered double-digit price movements for the asset.
