If you have been following the XRP price action and the SEC Ripple process, you might have noticed some correlation. XRP performed bullishly in the second half of September. The changing dynamics of the litigation in favor of Ripple could play a large role in influencing bullish sentiment.
Here is AMBCrypto XRP Price Forecast for 2023-24
The hype surrounding the lawsuit related developments fueled a strong rally for XRP, which revived bullish expectations. In fact, the altcoin also managed to record a break above its long-term descending support level. This performance could set the stage for what will happen next if the market does not experience another unexpected crash.
A final verdict is expected soon given that the legal battle is over. So far, the case has tilted in favor of Ripple Labs, especially because the Securities and Exchange Commission did not have a strong case for winning the case. This was the main reason behind the rally in the second half of September.
Moreover, Ripple Labs has significantly expanded its services, with the blockchain company being recognized among the top 250 Fintech of the year.
– Ripple (@Ripple) 4 October 2022
On the price action front, XRP hit a new local high at $0.55 before returning to its price at $0.44. An expected outcome, especially considering that some profit taking always happens after a big rally.
The most important thing to note here is that XRP has held onto most of its recent gains. Moreover, it has seen some upside in the last couple of days, which confirms that it is seeing good demand even at the mentioned price. This is confirmation that it has finally managed to overcome its low range as it has been stuck since mid-June.
Several of the observations on the chain seem to align with the current dynamics in favor of Ripple in the ongoing trial. For example, its metric for the number of electoral transactions in Santiment has recorded increased activity since early October.
This surge in options activity reflects the uptrend observed over the past three days – a confirmation of buying pressure. XRP’s 30-day MVRV ratio has also been on the rise as a result of the buildup driving the altcoin’s price higher.
XRP’s daily active headline metric is still closer to the 4-week range, after recording a dip since the last week of September. In fact, it hasn’t made a huge rally at press time, despite the 3-day rally and the rise of MVRV.
The lack of significant change in daily active headlines may indicate that the retail sector has not responded to the election activity. However, we have seen a slight increase compared to the last 24 hour period.
Electoral procedures tend to precede or accompany retail activity. Chances are that the recent election activity will encourage an influx of retail liquidity, in which case the XRP price action could benefit the bulls.
However, this does not take into account the possible unexpected bearish events.