XRP (XRP) resolved several losses following this week’s market clash, with 8% profits trading at $2.17 each day over the past 24 hours.
Topten Altcoin is 12% ahead of its 24-hour low of $1.94, as Crypto Market sentiment shows signs of recovery.
XRP/USD 4-hour chart. Source: CointeLegraph/TradingView
Today, let’s look at the major drivers behind the XRP rebound.
Potential fire of SEC in Ripple case
One of the most important catalysts to spur the price rise of XRP is the new optimism of optimism about Ripple’s long-standing legal battle with the Securities and Exchange Commission (SEC).
What you need to know:
The SEC sued Ripple in December 2020, claiming that Ripple sold XRP as unregistered security.
The lawsuit has overshadowed XRP for years, curbing prices and adoption.
Over the past week, the new SEC administration has reduced enforcement measures against crypto companies.
The agency has closed lawsuits against Coinsese, Consensey, Robinhood, Uniwop and Gemini.
This sparked rumors and speculation that the SEC might dismiss the lawsuit against Ripple.
Otherwise, it is still possible to reach a favorable settlement under new leadership or change regulatory priorities.
There is no official communication from the SEC, but the mere possibility of a solution sparked bullish feelings.
Related: XRP price rises 50% to $3 if the main support level is retained – Analyst
XRP whales accumulate in dip
Additionally, following a 15% crash in Altcoin over the past seven days, there is an aggressive accumulation by XRP whales.
Important points to note:
Whale are entities with large XRP holdings that can affect the market.
Onchain data often means that these players scooped up XRP during price drops and treated pullbacks as an opportunity to buy.
The recent weeks are no exception. On-chain data shows a significant increase in activity in the wallet with a significant amount of XRP.
The chart below shows that addresses between 1 million to 10 million and 10 million and 10 million to 10 million have increased their holdings since February 24th.
Last week, these addresses were worth nearly $1 billion, up 440 million XRP.
Total address between 1m and 100m xrp. Source: Santiment
XRP prices see V-shaped recovery
XRP price action has developed a V-shaped recovery chart pattern on its 4-hour chart since February 25th, as shown below.
A V-shaped recovery is a bullish pattern that forms when assets rise sharply after a sharp decline.
It’s complete when the price moves to the resistance above the V layer, also known as the neckline.
The XRP appears to be on a similar orbit, and is currently trading below the main supply congestion zone between $2.35 and $2.58, where the 50-year, 100-day, 200-day simple moving average (SMA) is currently sitting.
This suggests that the Bulls will need to push XRP over this area to increase the chances of rising to the neckline at $2.74 to complete the V-pattern.
At higher than that, the next logical move is the monthly high of $2.84, which reached February 14th.
This represents a 30% increase from the current price.
XRP/USD Daily Chart. Source: CointeLegraph/TradingView
Meanwhile, analyst Dark Defender said XRP/USD completed the correction wave after “sales lowest Fibonacci levels in the fourth wave” in the monthly time frame.
Analysts believe XRP is on track to continue its pattern towards $8, with or without news from the SEC.
Source: Dark Defender
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.
