Ripple price analysis: Whales are accumulating
Updated
The much-awaited Santa Claus rally on Wall Street has failed to kick off, and that has kept the broader cryptocurrency market under pressure. Ripple (XRP) remains pinned below $0.35 as of 23 December 2022.
XRP’s price is likely to take a decisive turn in 2023 after the judgement in the case between the US Securities and Exchange Commission (SEC) and Ripple. XRP supporter and attorney Job Deaton, speaking on the Real Vision Crypto YouTube channel, said that he does not expect the verdict before March 31, as the judge will have to go through a huge quantum of documents. He believes the decision may happen in April or early May.
Analysts are divided about who will come out on top in the crucial legal battle. Matthew Sigel, head of digital assets research at VanEck, said in a report titled 11 Crypto Predictions for 2023 that the SEC’s win against the blockchain-based publishing company LBRY lowers the probability of a Ripple victory “materially”.
However, XRP investors remain positive, and are using the current drop in price to accumulate. Data from behaviour analysis platform Santiment shows that both whales and sharks, holding between one million to 10 million XRP, have bought aggressively. That has pushed the percentage of their combined supply to an all-time high of 7.23%.
???????? #XRPNetwork whale and shark addresses that share the 1M to 10M $XRP tier have been rapidly accumulating to end 2022. In December, both the amount of these sized addresses (1,617) and their percentage of supply held (7.23%) have hit a new #AllTimeHigh. https://t.co/R8bDPUviq1 pic.twitter.com/4GyrMPxYPV
— Santiment (@santimentfeed) December 20, 2022
Could Ripple go up in the next few days or will it continue to languish at the current levels? Read the XRP price analysis to find out.
Ripple technical analysis: Weekly chart
Ripple (XRP) weekly chart 23 December 2022 – Source: Capital.comXRP’s price turned down from the 20-week exponential moving average (EMA), indicating that sellers continue to defend the level aggressively. The bears will try to sink the price to the important support zone of $0.31 to $0.28.
Buyers are expected to defend the zone, because if they fail in their endeavour, the XRP/USD pair could resume the downtrend.
The relative strength index (RSI) is trying to form a bullish divergence, indicating that the bears may be losing their grip. Buyers will have to push and sustain the price above the 20-week EMA to gain the upper hand in the near term.
The pair could then rise to the overhead resistance of $0.55. A break above this level could signal the start of a sustained recovery to $1.
What is your sentiment on XRP/USD?
Ripple technical analysis: Daily chart
Ripple (XRP) daily chart 23 December 2022 – Source: Capital.comRipple’s price bounced off $0.33 on 19 December and the bulls will now try to push the price to the 20-day EMA. The bears are likely to defend the zone between the moving averages.
If the price turns down from this overhead resistance, the bears will make one more attempt to sink the pair below $0.31. The downsloping 20-day EMA and the RSI in negative territory indicate advantage to bears.
On the contrary, if bulls drive the price above the moving averages, it will suggest a change in sentiment from selling on rallies to buying on dips. The pair could then rise to the overhead resistance at $0.42. If this level is scaled, the pair could pick up momentum and soar to $0.51.
Ripple: Buy or sell at current levels?
Ripple is attempting a recovery but could face strong selling at the moving averages. If the price turns down from the overhead resistance, the likelihood of a break below $0.33 increases. The pair could then drop to $0.31. Buyers will gain the upper hand on a break and close above the 50-day simple moving average. Ripple’s price analysis suggests that the pair could then rally to $0.42 and thereafter to $0.51.
The views and opinions expressed in the article are those of the author and do not constitute trading advice. Trading and investing involve substantial risks and you should do your own research or contact your financial adviser before arriving at a decision.
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