Ripple’s XRP has seen a modest 2% daily increase, recently climbing above $0.54 before stabilizing at around $0.53. While this price movement is noteworthy, another key indicator suggests that XRP might be on the verge of something much bigger. Analysts are increasingly optimistic, and it all comes down to one crucial factor: supply.
Declining Exchange Supply Signals Bullish Momentum
The most compelling reason behind the growing optimism for XRP is the dwindling supply of the token on exchanges. Data from Santiment reveals that only 2.58 million XRP tokens are currently available for trading on various platforms—the lowest level seen in the past seven months.
This reduced supply often indicates that investors are holding onto their tokens rather than selling them, which can create a scarcity effect. The fewer tokens available on exchanges, the lower the selling pressure, leading to the possibility of a price surge. The crypto market has seen similar trends in other assets, where reduced availability has led to bullish movements.
Crypto analyst CRYPTOWZRD has echoed this sentiment, noting that XRP’s daily chart is flashing bullish signals. He predicts that the token could experience further gains if the current trends continue.
Ripple vs. SEC – Legal Drama Continues
Another factor that could significantly impact XRP’s price is the ongoing legal saga between Ripple and the U.S. Securities and Exchange Commission (SEC). In a recent development, Judge Torres ordered Ripple to pay a $125 million fine for securities law violations—a far cry from the SEC’s original $2 billion demand.
Ripple’s CEO, Brad Garlinghouse, called this outcome a “win,” despite the hefty fine. The ruling is seen as a positive turn for Ripple, though it doesn’t mark the end of their legal troubles. Both parties have until early October to respond to the decision, with the SEC considering an appeal. This ongoing uncertainty surrounding the legal case adds a layer of complexity to XRP’s price movements.
Adding to the drama, Ripple has requested a delay on the $125 million payment, originally due on September 6. The SEC has agreed to the delay, further extending the legal battle and its potential effects on XRP’s market performance.
What’s Next for XRP?
XRP’s declining exchange supply and the Ripple-SEC legal case are pivotal factors that could shape its price trajectory in the near future. Investors are advised to keep a close eye on market developments, as any resolution in the legal case or changes in supply dynamics could trigger significant price movements.
Also Read: Pepe (PEPE) Surges To $1.09B In Daily Trading Volume, Outpacing XRP And Dogecoin
While XRP is showing signs of a potential rally, market volatility and legal uncertainties remain risks. However, with reduced selling pressure and bullish technical signals, the cryptocurrency is poised for potential growth in the weeks ahead.
XRP’s recent price stability and key market indicators suggest that the token could be primed for a significant rally. With a declining supply on exchanges and ongoing legal developments, XRP investors should stay alert.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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