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Your Daily Bullish Signal: XRP Gains Are Expected To Be Sustainable

Your Daily Bullish Signal: XRP Gains Are Expected To Be Sustainable

Beginner
2023-11-06 | 5m

Created in 2012 by Ripple Labs, XRP is used to facilitate the transfer of value between asset types. In other words, by acting as a bridge currency, XRP allows users to send and receive money in different currencies while minimising transaction costs and delays associated with traditional banking systems. It is also traded on various cryptocurrency exchanges as a standalone digital asset as many see the potential of capital appreciation in its value.

Ripple Labs had been fighting the U.S. Securities and Exchange Commission (SEC) over the classification of XRP since December 2020 and has recently secured a partial win against the SEC. The federal court ruling in July 2023 says that as long as XRP is traded on exchanges, it is not considered a security and thus doesn’t violate securities laws. That is not only a victory for Ripple themselves but also serves as a landmark precedent for crypto businesses, especially in the unclear regulatory environment at the moment.

XRP prices soared in July following the court’s decision, helping the token snatch the 4th place on the list of biggest cryptocurrencies by market capitalisation from BNB for a brief two weeks. After reaching 2023’s high at US$0.887511 on July 13, XRP wasn’t able to maintain this bullish momentum and hit as low as US$0.467079 on September 11, 2023. Nevertheless, even that ‘low’ is still equivalent to a 37% increase from this year’s opening at US$0.339923.

The SEC not making an appeal has sent ripple effects through the digital space and is most likely to have contributed to the recent market rally. Throwing in the recent partnerships and Ripple Labs’ expansion as the service and infrastructure provider for financial institutions, XRP is set to sustain its gains this time.

To date, Ripple Labs has established partnerships with over 120 financial institutions and banking giants, including Santander - the multinational retail bank with more than 102 million customers and 14,000 branches worldwide, the prestigious payment card issuer American Express, the British bank Standard Chartered, SBI Holdings - a major Japanese financial group and even Canada’s top university - the University of Toronto. It is also selected by the Hong Kong Monetary Authority for the settlement of their tokenised real estate pilot. All those partnerships ensure an accelerated adoption of XRP and of course, an increase in the token’s value.

XRP’s average daily volume since the court ruling on July 13, 2023 stands at US$1,314,379,501, with the highest figure recorded at US$10,397,344,596 on the same day. Its volume picked up in October with a rise of 24% in monthly average and 28% in 30-day volume from a quieter September. Its monthly high also increased by 12% from September’s US$0.545457 to October’s US$0.612737.

Accumulation has been on a constant rise since July 2023. XRP has seemingly broken through the weekly resistance levels of US$0.55 after staying for quite some time above the US$0.50 psychological barrier. Funding rates on XRP contracts showing green can be seen as another major indicator of the bullish sentiment associated with this token, because positive funding rates mean there are more people betting on prices going up and eager to pay the fees to hold their positions. Moreover, data from Sentiment points to a new wallet record of 277,620 wallets holding at least 10,000 XRP as well as over 255 transactions worth US$1 million each taking place in October 2023. These on-chain metrics suggest a renewal of investors’ confidence besides the spark of new interests in the month of UPtober for XRP, paving the way for it to, hopefully, make new support levels above US$0.55 before the end of 2023.

Trade XRP today on Bitget: Bitget Spot Trading (10X) | Bitget USDT-Ⓜ Futures | Bitget Coin-Ⓜ Futures

Learn more about XRP on Bitget Academy: What is Ripple (XRP)? | What Is Ripple (XRP)? What Is the Price of XRP?