Ripple Price Prediction: XRP Bulls Come Through In The Clutch
Daily Ripple XRP Technical Analysis
- XRP has gone through a huge price slump due to the SEC lawsuit.
- The price chart shows increasing bullish momentum.
As reported yesterday, Ripple buyers were in a tremendous predicament. With the 20-day and 200-day SMAs about to chart the death cross, the price was on the verge of a catastrophic drop. However, the bulls have come through from XRP when it mattered most.
XRP Bulls Negate Bearish Cross
This Thursday, the price picked up from $0.248 to $0.323 and crossed over both the 20-day and 200-day SMAs. In the process, both the MACD and parabolic SAR have reversed from bearish to bullish.
Image: XRP/USD daily
This bodes extremely well for the buyers as it shows that there is more room for growth. Looking at the 4-hour chart, we can see that the relative strength index has dipped back into the neutral zone from the overbought zone. This gives further credence to our theory that the price is going through a temporary correction.
Image: XRP/USD 4-hour
Grayscale Drops XRP As Public Sentiment Is Still Down
The news about the lawsuit against Ripple by the US Securities and Exchange Commission (SEC) has caused many exchanges to halt or suspend the trading of XRP. Grayscale Investments recently announced that it has rebalanced its Digital Large Cap Fund and removed XRP in the process.
Since the SEC announced its decision to file the lawsuit, the number of XRP whales holding at least one million coins has been on a constant decline. As per Coinmetrics data, around 154 whales have left the category of those owning one million or more XRP.
"..the number of addresses holding large amounts of XRP has dropped precipitously since the SEC’s announcement of charges against Ripple. The number of addresses holding at least 1M XRP dropped from 1,721 on December 21st, the day before the announcement, to 1,567 by January 3rd."
Grayscale has also recently removed support for XRP. The XRP removed has been sold, and all cash proceeds are being used to purchase the remaining fund components of Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
Grayscale explained that the removal of XRP was due to Genesis Global Trading (the authorized participant of the fund) announcing that it will suspend trading of XRP from January 15th, 2021.
Key Price Levels To Watch For XRP
For the buyers, there are two key price levels that they need to overcome. Firstly, the $0.36 resistance barrier and then the 200-bar SMA ($0.40) in the 4-hour chart. If the price does manage to go above these zones, the bulls will successfully reverse the bearish narrative.