XRP Price Rise on the Horizon? This vital ripple metric suggests so

TL;DR

The price of XRP saw a slight increase in the last 24 hours and a decrease in supply on exchanges suggests a new bullish trend. The ongoing legal battle between Ripple and the SEC could affect the asset’s price as both sides consider their next steps ahead of the October deadline. XRP could be preparing for a rally

Ripple’s XRP has followed the general resurgence of the cryptocurrency market, witnessing a slight price increase of 2% on a daily basis. It briefly topped $0.54 several hours ago before settling at the current $0.53 (according to CoinGecko data).

XRP Price, Source: CoinGecko

One major indicator, however, suggests that a more serious bullish trend could be on the cards. This is the supply of XRP on exchanges, which has dropped significantly. According to Santiment, 2.58 million XRP tokens are currently held on trading floors, the lowest mark in roughly seven months.

XRP Supply on Exchanges, Source: Santiment

The decrease in supply on exchanges usually indicates that there are fewer assets available for immediate sale, with an increasing proportion of investors preferring to hold their deposit using self-custody methods. Reduced immediate selling pressure, in turn, could be seen as a bullish factor for the price of XRP.

Many analysts are also optimistic that the asset’s valuation will head north soon. User X, CRYPTOWZRD, claimed that XRP’s daily chart close was bullish, outlining potential gains ahead. “I will be tracking the intraday chart formation tomorrow for the next trade,” they added.

Other analysts predicting good days ahead for XRP include Crypto Bitlord and Mando CT. The former said the asset was undervalued, setting a somewhat ridiculous price target of $27. Mando CT, who is known as a strong supporter of Bitcoin (BTC), argued that there is a clear bullish divergence, promising to accumulate as many XRP tokens as possible.

Awaiting the developments of Ripple v. SEC

A major factor that could cause additional volatility for the price of XRP is the outcome of the legal battle between Ripple and the US Securities and Exchange Commission (SEC). Last month, Judge Torres ordered the company to pay a $125 million fine for violating certain securities laws.

The amount represents a 94% deduction from the regulator’s initial $2 billion demand, prompting many (including Ripple CEO Brad Garlinghouse) to declare the decision a victory.

The two sides have until early October to face the ruling, as the SEC appears more inclined to do so. Earlier this month, Ripple filed a motion to stay the monetary portion of the Court’s ruling, which was filed in August. The firm’s lawyers revealed that the regulator agreed to the proposed terms and delayed the payment (which was due on September 6).

Some X users suggested the move could be a precursor to an SEC appeal. US Attorney Fred Rispoli, for example, said:

“Going through all this effort to establish a trust for the funds increases the chances of an appeal at the IMO. But ultimately, this is just the safest move for the SEC to buy time until the 7 of October to appeal”.

It will be interesting to see how the case unfolds in the coming months and whether it will have a significant impact on the price of XRP. Historically, major developments around demand have led to double-digit price moves for the asset.

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