XRP, the token powering Ripple’s cross-border money transfer ecosystem, displayed exemplary performance alongside bitcoin and ethereum in March as investors kept the impending summary judgment on the lawsuit against the US Securities and Exchange Commission (SEC) in sight.
From the March low of $0.3372, XRP price exploded 65% to trade at a new 2023 high of $0.5847 before correcting to test support at $0.5. Support at $0.5 has been crucial this week, as XRP tested $0.484 at some point before reclaiming its current position.
XRP Overtakes Cardano, Becomes 6th Largest Coin
XRP’s market cap increased by 0.58% to $26 billion in 24 hours, surpassing Cardano’s $13.5 billion. ADA doing relatively well on SaturdayUp 2% to change hands at $0.38.
Meanwhile, XRP attracted over $700 million in trading volume in the same 24-hour period, however, its price remained relatively unchanged at $0.51.
Most experts believe that XRP is balancing on the edge of a high cliff; Where two scenarios are likely to emerge. On the bright side, XRP could resume its upward move with a possible bullish momentum ahead of the final ruling on the matter with the SEC on or before May 6th.
On the other hand, if the $0.50 support fails to hold and XRP price declines below $0.48, investors can start bracing for a potential trend reversal. This means short positions can be profitable with targets of $0.45, $0.4 and $0.4 respectively.
On the other side of the fence, a drop in anticipation of Ripple winning the case could wipe out most long positions.
Based on the position of the Moving Average Convergence Divergence (MACD) indicator, the path of least resistance is to the downside. The sell signal, as seen on the chart above, appears as the MACD line in blue below the signal line in red.
If the bulls break out of the $0.48 and $0.50 support area, a sell signal will have a serious impact on XRP price. However, if this support is maintained, the technical outlook for XRP Will continue to correct towards $1.
According to the position of all applicable moving averages, there is a high probability of XRP price recovering to $1.
The 100-day exponential moving average (EMA) (line in blue) is about to flip above the 200-day EMA (line in purple), ahead of a golden cross in late March.
A golden cross pattern is formed when a short-term moving average crosses above a long-term moving average. For example, when the 50-day EMA flips above the 200-day EMA. Traders consider the pattern to be bullish, which means that the chances of a return to $0.4 or $0.35 are slim.
Can XRP Overtake Bitcoin in 2023?
XRP performance in 2023 will revolve around the Ripple vs SEC court case, whose summary decision is expected on or before May 6th. Investors are betting on Ripple winning the case as the biggest driver for XRP price in 2023.
However, as we get closer to the verdict, new twists are coming to the fore. On April 7, attorney Bill Morgan shared on Twitter that according to an admission made by an SEC expert, XRP’s price movements since mid-2018 have been largely influenced by the prices of bitcoin and ethereum, which is up to 90%. Of diversities.
He put forth the idea that if the SEC’s expert opinion holds up, it could suggest that Ripple is allowing XRP’s value to be affected by price changes in Bitcoin and Ethereum.
Thus, the SEC aims to prove this claim by showing evidence that Ripple’s price announcements affect the price of XRP. Furthermore, the SEC could argue that Ripple holds a substantial amount of XRP, making the token centralized and subsequently a security.
Having said that, XRP has a long way to go before it can pose a serious challenge. bitcoin dominance in the market.
Related Articles: